Question

A cloth merchant sold half of his cloth at 20% profit, half of the remaining at 20% loss and the rest was sold at the cost price. In the total transaction, his gain or loss will be:

• A. Neither loss nor gain
• B. 5% loss
• C. 5% gain
• D. 10% gain

Answer 1

The correct option is C 5% gain

Let the cost of cloth=100 Rs
then price of half cloth=50 Rs.
profit=20 %
Then S.P. of half cloth=$50\times \frac{120}{100}=60Rs.$
Price of one forth cloth=25 Rs.
loss 20%
Then S.P of one forth cloth=$25\times \frac{80}{100}=20Rs.$
The remaining 25 m cloths S.P.=25
$TotalS.P.=60+20+25=105Rs.$
$Profit=105-100=5Rs.$
$Pfrofitpercentage=\frac{5}{100}\times 100=5$