profit and loss

Question

A shopkeeper listed his price of goods 30% above CP. He sells half the stock at this price, one fourth of stock at discount of 15% and the remaining at 30% discount. His overall profit was?

Answer 1

Let g be the price of goods. a 30% increase is .3g . So his retail selling price is 1.3g.

When you take off 15%, that is the same as paying 85% of the price. So he sold some of his goods at .85(1.3g) = 1.105g which is still an increase of 10.5%.

When you take off 30%, it is the same as paying 70% of the retail price, so .7(1.3g) = .91g which means he's losing 9% by selling at this price.

 

So 1/2 of his material sold at 1.3g, 1/4 sold at 1.105g, and 1/4 at .91g.

 

So .5(1.3g) + .25(1.105g) + .25(.91g) = 1.15375g

This represents a 15.375% increase over what he paid.

 

Hope this helps.