Question

A girl sells two bags at Rs. 600 each. If she makes a profit of 20% on one of the bags and incurs a loss of 25% on the other, find the resultant gain or loss in the transaction.

• A. Rs. 100 loss
• B. Rs. 200 loss
• C. Rs. 130 gain
• D. Rs. 240 gain

Hint:

When the selling prices are equal but the profit and loss percentages differ, work out each cost price separately and then compare the totals.

Answer 1

The Correct Option is A

Step 1: Find the cost price of the bag sold at a profit.
The selling price of this bag is Rs. 600, and it is sold at a 20% profit, which means the selling price is 120% of the cost price.
\[ CP_1 = \frac{600}{1.2} = 500 \]
So the cost price of the first bag is Rs. 500.

Step 2: Find the cost price of the bag sold at a loss.
The selling price of this bag is also Rs. 600, but it is sold at a 25% loss, which means the selling price is only 75% of the cost price.
\[ CP_2 = \frac{600}{0.75} = 800 \]
So the cost price of the second bag is Rs. 800.

Step 3: Compare the total cost price with the total selling price.
Total cost price \(= 500 + 800 = 1300\).
Total selling price \(= 600 + 600 = 1200\).
Since the total cost price is more than the total selling price, the girl makes a loss overall.

Step 4: Calculate the net loss.
\[ \text{Net loss} = 1300 - 1200 = 100 \]

Final Answer:
The transaction results in a net loss of Rs. 100. \[ \boxed{\text{Rs. 100 loss}} \]