A shopkeeper earns a profit of Re 1 by selling one pen and incurs a loss of 40 paise per pencil while selling pencils of her old stock. In a particular month she earns neither profit nor loss. If she sold 70 pens, how many pencils did she sell?
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Step-by-step explanation:
There is neither profit nor loss.
Profit earned + loss incurred = 0
i.e., Profit earned = - Loss incurred.
Now, Profit earned by selling 70 pens = 70 × 1 = ₹ 70
Therefore, Loss incurred by selling pencils = - ₹ 70 or - 7000 paise.
Loss incurred on each pencil = 40 paise.
Hence, total number of pencils sold=
Total loos incirred/Loss on each pencil
= -7000/-400= 175 pencils
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