Question
A manufacturer produces 500 units of a certain product,
with each unit costing him Rs 120 to produce. Out of these, he sells 300 units at a profit of 15%, while the remaining 200 units are sold at a loss of 5%. Calculate the overall percentage of profit or loss on the total transaction.Solution
Cost Price of 500 units = 500 × 120 = 60000 Selling Price of 300 units at 15% profit = 300 × 120 × 1.15 = 41400 Selling Price of 200 units at 5% loss = 200 × 120 × 0.95 = 22800 Total Selling Price = 41400 + 22800 = 64200 Overall Profit =64200 - 60000 = 4200 
= 7%
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