A man buys a set of 3 identical watches at a total cost of Rs. 4,500. He sells them at Rs. 1,800, Rs. 1,700, and Rs. 1,600, respectively. What is the overall profit or loss?
- AOption (a)
Rs. 100 loss
- BOption (b)
Rs. 100 profit
- COption (c)
Rs. 600 profit
- DOption (d)
Rs. 600 loss
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Correct answer
Rs. 600 profit
Why this answer is correct
Shortcut Trick
Total Selling Price = 1800 + 1700 + 1600 = Rs. 5100
Total Cost Price = Rs. 4500
Profit = Total Selling Price − Total Cost Price = 5100 − 4500 = Rs. 600
∴ The correct answer is Rs. 600 profit.
Alternate Method
Given:
Total Cost Price (CP) of 3 watches = Rs. 4500
Selling Prices (SP) of watches = Rs. 1800, Rs. 1700, and Rs. 1600
Formula Used:
Total SP = SP1 + SP2 + SP3
Profit = Total SP − Total CP (if SP > CP)
Profit Calculation Total CP = Rs. 4500 SP1: 1800 SP2: 1700 SP3: 1600 Total SP = Rs. 5100 Profit Rs. 600
Calculations:
⇒ Total SP = 1800 + 1700 + 1600 = Rs. 5100
⇒ Since Total SP > Total CP (5100 > 4500), an overall profit is earned.
⇒ Overall Profit = Total SP − Total CP
⇒ Profit = 5100 − 4500
⇒ Profit = Rs. 600
∴ The correct answer is Rs. 600 profit.
Additional Information
Profit & Loss Basics
A profit is made when the Selling Price (SP) is greater than the Cost Price (CP). Profit = SP − CP. Conversely, a loss occurs when CP > SP.
Profit Percentage
Profit percentage is always calculated on the base of Cost Price unless stated otherwise. Profit % = (Profit ÷ CP) × 100.
Marked Price & Discount
Marked Price (MP) is the list price labeled on the article. Any discount is calculated directly on the MP. Selling Price = MP − Discount.