Question

The cloth merchant sold half of his cloth at 40% profit, half of remaining at 40% loss and the rest was sold at the cost price. In the total transaction his gain or loss will be
1. 20% gain
2. 25% loss
3. 10% gain
4. 15% loss

Answer 1

Correct Answer - Option 3 : 10% gain

Let total cloth be 100 m and price of the 100 m cloth is Rs. 100, then

According to the question

Total SP = 50 × (140/100) + 25 × (60/100) + 25

= 70 + 15 + 25 = 110

Profit = 110 – 100 = 10

Profit % = (10/100) × 100 = 10%