Two articles are sold at the same selling price. The first is sold at a profit of 10% and the second at a loss of 10%. Find the overall profit or loss percentage.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 1% loss
The 10% profit and the 10% loss are taken on different cost prices, so they do not cancel. Find each cost price from the common selling price.
Let each selling price be Rs 99
Cost of the first \(\displaystyle =99\times\frac{100}{110}=\) Rs 90
Cost of the second \(\displaystyle =99\times\frac{100}{90}=\) Rs 110
Total cost \(=90+110=\) Rs 200, total selling price \(=2\times99=\) Rs 198
Loss \(=200-198=\) Rs 2
Loss % \(\displaystyle =\frac{2}{200}\times100=1\%\)
Overall there is a 1% loss.