Question

Q. A dealer marks his goods so as to make a 20% profit. But due to a fire in his warehouse, 5% of his goods are damaged, also 25% became soiled and hence, they had to be sold at half their cost. If he sells the remaining at the marked price, his net gain or loss is

• A. 2% gain
• B. 4% loss
• C. 3% gain
• D. 3.5% loss

Answer 1

The correct option is D 3.5% loss

Explanation:

Let no. of articles = 100 of 1 Rs. each

So, Total CP = Rs. 100

ATQ, required SP = 100 + 20 = Rs. 120

SP of each article = Rs. 1.2

SP of 25% articles $=\frac{1}{2}\times 25=Rs.12.5$

Remaining articles = 100 – 25 – 5 = 70

SP of 70 articles = 70 × 1.2 = Rs. 84

Total SP = 84 + 12.5 = Rs. 96.5

Loss = 100 – 96.5 = 3.5

Loss% $=\frac{3.5}{100}=3.5\%$