A shopkeeper earns a profit of ₹ 1 by selling one pen and incurs a loss of 40 paise per pencil. If she sells 70 pens, then how many pencils does she have to sell if there is no profit or loss in the transaction.

175

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174

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170

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185

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Solution

The correct option is A 175
There is neither profit nor loss.
profit earned + loss incurred = 0 i.e.,
Profit earned = – Loss incurred.
Now,
Profit earned by selling 70 pens
= ₹ 70 x 1 = ₹ 70
Implies, Loss incurred by selling pencils = – ₹ 70 or –7000 paise.
Loss incurred on each pencil = 40 paise.
Therefore, Total number of pencils sold

= $\frac{T o t a l l o s s i n c u r r e d}{L o s s o n e a c h p e n c i l}$

=(–7000) ÷ (–40)
= 175 pencils.

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