Subject: General Aptitude · Chapter: Profit and Loss · Exam: 2006 · Marks: · Difficulty:
A manufacturer sells an article to a wholesale dealer at a profit of 20\% and the wholesale dealer sells it to a retail merchant at a loss of 5\%. Find the resultant loss or profit.
(a)12\% loss
(b)12\% gain
(c)14\% loss
(d)14\% gain
Answer
Answer (as printed): D
Explanation
Let the cost of the article be ₹ $x$. Then, cost paid by retail merchant = 95\% of 120\% of ₹ $x$ $$=₹\left(\frac{95}{100} \times \frac{120}{100} \times x\right)=₹\left(\frac{114}{100} x\right)=114 \% \text { of } ₹ x$$ ∴ Gain $=14 \%$.
Explanation as extracted from the printed page; notation may be imperfect.