A person purchased a smartphone for Rs. 8,000 and sold it at a profit

Question

A person purchased a smartphone for Rs. 8,000 and sold it at a profit of 25%. From that amount, he purchased another phone and sold it at a loss of 20%. What is his overall profit or loss?

(A) profit of Rs. 2,000
(B) profit of Rs. 1,000
(C) loss of Rs. 2,000
(D) loss of Rs. 1,000
(E) neither profit nor loss

MathRevolution · Answer

First C.P. = 8,000

First S.P. =  \frac{125}{100} * 8,000 = 10,000

Second C.P. = 10,000

Second S.P. =  10,000 * \frac{80 }{ 100} = 8,000

No Profit no loss

Answer E

SiddhantSarkar · Answer

How are we assuming that the second CP is 10000? When the question says "from that amount" - shouldn't our assumption be that 8000 (original CP) is drawn out from the revenue/SP and used to fund the next mobile? Unless given, the CP of items don't change right?

MCO9 · Answer

When the question says 'From that amount,' I understand that it refers to the profit of 25% from 8000. Could someone explain why this approach is not correct? Any other approach doesn't make sense to me

Bunuel · Answer

A person purchased a smartphone for Rs. 8,000 and sold it at a profit of 25%. From that amount, he purchased another phone and sold it at a loss of 20%. What is his overall profit or loss?

(A) profit of Rs. 2,000
(B) profit of Rs. 1,000
(C) loss of Rs. 2,000
(D) loss of Rs. 1,000
(E) neither profit nor loss

First sale:

Cost price = Rs. 8,000
Profit = 25 percent of 8,000 = Rs. 2,000
Selling price = Rs. 10,000

Second sale:

New cost price = Rs. 10,000
Loss = 20 percent of 10,000 = Rs. 2,000
Selling price = Rs. 8,000

Overall: 
He started with Rs. 8,000 and ended with Rs. 8,000.
So there is  neither profit nor loss .

Answer: E.

“From that amount” just means the money he received after selling the first phone. Once the first transaction is over, the original cost price does not carry forward. The second phone’s cost price is whatever money he uses to buy it, not the old Rs. 8,000.

A person purchased a smartphone for Rs. 8,000 and sold it at a profit

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A person purchased a smartphone for Rs. 8,000 and sold it at a profit

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