Question

A retailer sold two articles at same price. He sold the first one at 10% profit and the
another one at 20% loss. The total cost price of the two articles is 79500. Find the cost
price of each one.
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Answer 1

Step-by-step explanation:

SOLUTION:-

A loss of about 1 percent.

EXPLANATION:-

Let C1 be equal to the cost of the first article,

C2 be equal to the cost of the second article and P be equal to the selling price.

Revenue = 1.0P + 1.0P = 2.0P.

Given a 10 percent profit for the first article it follows that P/C1 = 110% = 1.1, and that:

C1 = P/1.1 = 0.90909P (to 5 digits of precision)

Given a 10 percent loss for the second article it follows that P/C2 = 90% = 0.9, and that:

C2 = P/0.9 = 1.11111P (to 5 digits of precision)

Total Cost = C1 + C2 = 2.02020P

Profit or Loss = Revenue - Cost

= 2.0P - 2.02020P = -0.02020P (to 5 digits of precision)

Loss ratio = (0.02020P/2P) = 0.01010 = 1.010%