A product costs 6000 Rs. It is sold at a 20% loss. From the selling price, a new product is bought and sold at a 40% profit. What is the overall profit (in Rs) on the whole transaction?
- AOption (a)
120 Rs
- BOption (b)
240 Rs
- COption (c)
360 Rs
- DOption (d)
480 Rs
- EOption (e)
720 Rs
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Correct answer
720 Rs
Why this answer is correct
Shortcut Trick
Net change percentage = a + b + (a × b) ÷ 100
Here, a = −20% (loss) and b = +40% (profit).
Net profit% = −20 + 40 + (−20 × 40) ÷ 100 = 20 − 8 = 12%.
Overall profit = 12% of 6000 = 0.12 × 6000 = 720.
∴ The correct answer is 720 Rs.
Alternate Method
Given → Initial Cost Price (CP1) = 6000 Rs, Loss% = 20%, Profit% on second item = 40%. Formulas: SP = CP × (100 ± Gain/Loss)% ÷ 100 | Overall Profit = Final SP − Initial CP.
⇒ Selling Price of first product (SP1) = 6000 × (100 − 20) ÷ 100 = 6000 × 0.8 = 4800 Rs.
⇒ Cost Price of second product (CP2) = SP1 = 4800 Rs.
⇒ Selling Price of second product (SP2) = 4800 × (100 + 40) ÷ 100 = 4800 × 1.4 = 6720 Rs.
⇒ Overall Profit = Final SP − Initial CP = 6720 − 6000 = 720 Rs.
∴ The correct answer is 720 Rs.
Additional Information
Successive Percentage Change
When a value is changed by x% and then the resulting value is changed by y%, the net change is (x + y + xy/100)%.
Profit and Loss Basics
Profit occurs when SP > CP. Loss occurs when CP > SP. Both are always calculated on the CP unless stated otherwise.
