Some stock is unsellable — Profit & Loss Aptitude Question
Some stock is unsellable: A trader buys 100 items at ₹10 each. 10 items are damaged and cannot be sold; the rest… Answer and worked solution on CodeKairo.
- Topic: Profit & Loss
- Section: Quantitative Aptitude
- Difficulty: Medium
- Time target: 60 seconds
Question
A trader buys 100 items at ₹10 each. 10 items are damaged and cannot be sold; the rest are sold at ₹12 each. What is his profit percent?
Options
- 6%
- 8%
- 10%
- 12%
Show the answer and the worked solution
Correct answer: B. 8%
Worked solution
- Total cost = 100 × 10 = ₹1,000.
- Revenue = 90 × 12 = ₹1,080.
- Profit = 80 on 1,000 = 8%.
Answer: 8%.
The idea
Cost is incurred on everything bought; revenue only on what is sold. Computing the margin per sold item (20%) ignores the loss on the damaged stock.
Shortcut. Sell 90% of the stock at 1.2 times cost: 1.2 × 0.9 = 1.08, so the profit is 8% — no rupee totals needed.
Common trap. 10% — subtracting the 10% wastage from the 20% mark-up (20 − 10) instead of multiplying 1.2 × 0.9.