Question

A merchant earns 25% profit in general. Once his 25% consignment was abducted forever by some thieves. Trying to compensate for his loss he sold the rest of his consignment by increasing his selling price by 20%. What is the new percentage profit or loss?

Accepted Answer

C. Let total cost price of 100 items $= ₹100$. Normal SP of 1 item $= 1.25$. 25 items stolen, so 75 items left. New SP per item $= 1.25 	imes 1.20 = ₹1.50$. Total SP of 75 items $= 75 	imes 1.50 = ₹112.50$. Profit $= 112.50 - 100 = ₹12.50$. Profit percentage $= 12.5\%$ profit.

Merchant Profit with Stolen Consignment

Explanation

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