﻿ A retailer bought 3850 Linc pens and 1848 Cello pens at the same price. He sells Linc pens in such a way that he can buy 650 Linc pens with the sale price of 481 Linc pens. Again he can buy only 408 Cello pens with the sale price of 629 pens. What is the overall percentage of profit of the retailer?    A retailer bought 3850 Linc pens and 1848 Cello pens at the same price. He sells Linc pens in such a way that he can buy 650 Linc pens with the sale price of 481 Linc pens. Again he can buy only 408 Cello pens with the sale price of 629 pens. What is the overall percentage of profit of the retailer?

1)4.8%

2)9.6%

3)13%

4)none of these

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none of these

• Exam: Profit and Loss QUESTIONS

Let Selling Price of 1 Linc Pen = SL
Let Cost Price of 1 Linc Pen = CL
Let Selling Price of 1 Cello Pen = SC
Let Cost Price of 1 Cello Pen = CC

From "he can buy 650 Linc pens with the sale of 481 Linc pens",
650CL=481SL

→SLCL=650481=13×5013×37=5037

Hence, Profit Percentage on 1 Linc Pen =
%PL=SL−CLCL=50−3737=1337

From "he can buy only 408 Cello pens with the sale of 629 Cello pens",
408CL=629SL

→SCCC=408629=17×2417×37=2437

Hence, Profit Percentage on 1 Cello Pen =
%PC=SC−CCCC=24−3737=−1337

Cost of 3850 Linc Pens = 3850CL
Cost of 1848 Cello Pens = 1848CC

From "A retailer bought 3850 Linc pens and 1848 cello pens at the same price",
3850CL=1848CC

Overall Profit Percentage is the cost-weighted average of the individual Profit Percentages. Hence,
%P=[3850CL×1337]+[1848CC×(−1337)]3850CL+1848CC

Since, 3850CL=1848CC
%P=[1848CC×1337]+[1848CC×(−1337)]1848CC+1848CC=0

Hence, overall the retailer makes No Profit, No Loss.

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