Question

A man sells two chairs at Rs. 120 each and by doing so he gains 25% on one chair and loses 25% on the other. His loss on the whole in Rs. is = ?

A. 20

B. 16

C. 25

D. 30

Answer 1

The man experiences a loss of Rs. 16 overall by selling two chairs, one at a gain of 25% and the other at a loss of 25% with both selling at Rs. 120.

Step-by-step explanation:

A man selling two chairs at Rs. 120 each experiences different outcomes on each chair. On the first chair, he gains 25% and on the second chair, he loses 25%. If we consider the cost price of the chair he gained money on, let's call this cost price 'x' - he sold it for Rs. 120, making a 25% profit, which means he sold it for 125% of x or 1.25x. Therefore, x (cost price of first chair) can be found by dividing Rs. 120 with 1.25, which equals Rs. 96.

Conversely, the chair he lost money on also sold for Rs. 120, but this time it was at a 25% loss, indicating he sold it for 75% of its cost price. Let's call this cost price 'y.' To find y, we divide Rs. 120 with 0.75, resulting in Rs. 160. Calculating the total loss, we subtract the individual cost prices (96 + 160) from the total selling price (120 + 120), which gives us (240 - 256) resulting in a loss of Rs. 16 on the whole transaction.