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Question

Rahul purchased 80 items from the market. 25% items of the total items were defective and the remaining items were sold at 50% profit. What will be the overall profit percentage?

The correct answer is

12.5%

Understanding the Problem: Calculating Overall Profit

The question asks us to find the overall profit percentage when Rahul purchases a certain number of items, some of which are defective, and the remaining non-defective items are sold at a profit. We need to calculate the profit based on the total cost price of all items.

Step-by-Step Solution for Profit Calculation

Let's break down the problem and solve it step-by-step:

  1. Identify the Total Number of Items: Rahul purchased 80 items.
  2. Calculate the Number of Defective Items: 25% of the total items were defective.
    • Number of defective items $= 25\% \text{ of } 80$
    • Number of defective items $= \frac{25}{100} \times 80 = \frac{1}{4} \times 80 = 20$ items.
    These defective items cannot be sold for profit (we assume they have no resale value in this context).
  3. Calculate the Number of Non-Defective Items: The remaining items were non-defective.
    • Number of non-defective items $= \text{Total items} - \text{Defective items}$
    • Number of non-defective items $= 80 - 20 = 60$ items.
    These 60 items were sold.
  4. Assume a Cost Price (CP) per Item: To make calculations easy, let's assume the cost price of each item is Rs. 1.
    • Total Cost Price of 80 items $= 80 \times \text{CP per item}$
    • Total Cost Price $= 80 \times 1 = \text{Rs. } 80$.
  5. Calculate the Selling Price (SP) of Non-Defective Items: The remaining items (60 items) were sold at a 50% profit.
    • Profit percentage on these items $= 50\%$
    • Selling Price per non-defective item $=$ CP per item $+$ Profit per item
    • Profit per item $= 50\% \text{ of CP per item}$
    • Profit per item $= \frac{50}{100} \times 1 = 0.5 \times 1 = \text{Rs. } 0.5$.
    • Selling Price per non-defective item $= 1 + 0.5 = \text{Rs. } 1.5$.
  6. Calculate the Total Revenue from Selling Non-Defective Items: Rahul sold 60 non-defective items at Rs. 1.5 each.
    • Total Revenue (Selling Price) $= \text{Number of non-defective items} \times \text{SP per non-defective item}$
    • Total Revenue $= 60 \times 1.5 = \text{Rs. } 90$.
  7. Calculate the Overall Profit: The overall profit is the difference between the total revenue from sales and the total cost price of all items purchased.
    • Overall Profit $= \text{Total Revenue} - \text{Total Cost Price}$
    • Overall Profit $= 90 - 80 = \text{Rs. } 10$.
  8. Calculate the Overall Profit Percentage: The overall profit percentage is calculated on the total cost price of all 80 items.
    • Overall Profit $\% = \left( \frac{\text{Overall Profit}}{\text{Total Cost Price}} \right) \times 100$
    • Overall Profit $\% = \left( \frac{10}{80} \right) \times 100$
    • Overall Profit $\% = \frac{1}{8} \times 100$
    • Overall Profit $\% = 12.5\%$.

The overall profit percentage on the total purchase is 12.5%.

Summary of Calculations

Description Calculation Value
Total Items 80
Defective Items (25%) $25\% \text{ of } 80$ 20
Non-Defective Items $80 - 20$ 60
Assumed CP per Item Rs. 1
Total CP of 80 items $80 \times 1$ Rs. 80
SP per Non-Defective Item (50% profit) $1 + 50\% \text{ of } 1$ Rs. 1.5
Total Revenue (SP of 60 items) $60 \times 1.5$ Rs. 90
Overall Profit $90 - 80$ Rs. 10
Overall Profit Percentage $\left( \frac{10}{80} \right) \times 100$ 12.5%

Revision Table: Key Concepts in Profit and Loss

Term Definition Formula
Cost Price (CP) The price at which an article is purchased. -
Selling Price (SP) The price at which an article is sold. -
Profit When SP > CP. Profit = SP - CP
Loss When CP > SP. Loss = CP - SP
Profit Percentage Profit expressed as a percentage of CP. Profit $\% = \left( \frac{\text{Profit}}{\text{CP}} \right) \times 100$
Loss Percentage Loss expressed as a percentage of CP. Loss $\% = \left( \frac{\text{Loss}}{\text{CP}} \right) \times 100$

Additional Information on Profit and Loss Problems

When solving profit and loss problems involving multiple items or different conditions:

  • Always calculate profit or loss percentage with respect to the total cost price unless otherwise specified.
  • If some items are defective or unsold, their cost price is still included in the total cost price, but they do not contribute to the total selling price.
  • Assuming a convenient cost price (like Rs. 1 or Rs. 100) for a single item can simplify calculations, especially when percentages are involved.
  • Ensure you distinguish between profit/loss on individual items or a subset of items versus the overall profit/loss on the entire transaction.
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Important Questions from Profit and Loss

  1. Ram bought a chair at 35% discount on its market price, Had Ram got no discount, he would have had to pay ₹245 more. How much did Ram pay for the chair? 

  2. A shopkeeper bought an item for Rs. 4,500 and sold it at a loss of 5%. From this money, he bought another item and sold it at a profit of 10%. What is his overall profit?

  3. A man sells two articles at Rs. 9,180 each. He gains 8% on one article and loses 15% on the other. His overall profit or loss is:

  4. A shopkeeper selling an article for ₹46 loses 8%. In order to gain 6%, what should be the selling price of the article?

  5. A fruit seller sells apples at the rate of Rs. 68 per kg and there by loses 15%. At what price per kg, should he sell them to make a profit of 10%?

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