Question

A shopkeeper buys 10 television sets from a retailer at a rate of RM 15,000 per set. He sells half of them at a profit of 25% and the rest half at a loss of 20%. Find the overall profit/loss faced by the shopkeeper:

a. RM 15,000 profit
b. RM 15,000 loss
c. RM 12,500 profit
d. RM 12,500 loss

Answer 1

The shopkeeper faces an overall profit of RM 3,750.

Step-by-step explanation:

To find the overall profit/loss faced by the shopkeeper, we need to calculate the profit or loss on each set and then find the total profit/loss.

The shopkeeper buys 10 television sets at a rate of RM 15,000 per set, so the total cost is 10 * RM 15,000 = RM 150,000.

The shopkeeper sells half of the sets (5 sets) at a profit of 25%. The selling price for each of these sets is 15,000 + 15,000 * 0.25 = RM 18,750. So, the total revenue from these sets is 5 * RM 18,750 = RM 93,750.

The shopkeeper sells the remaining half (5 sets) at a loss of 20%. The selling price for each of these sets is 15,000 - 15,000 * 0.20 = RM 12,000. So, the total revenue from these sets is 5 * RM 12,000 = RM 60,000.

The overall profit/loss is the difference between the total revenue and the total cost, which is RM 93,750 + RM 60,000 - RM 150,000 = RM 3,750.

Therefore, the shopkeeper faces an overall profit of RM 3,750.