Multiple choice

A trader buys 8000 CDs at a discount of 20%. But 25% of the CDs are damaged in transit. He sells the remaining CDs at 40% Profit. What is the overall profit / loss percentage?

  1. 5% loss

  2. 5% gain

  3. 1% loss

  4. 1% gain

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Assume the marked price of the 8000 CDs is 10000, making the purchase price 8000 after the 20% discount. Since 25% are damaged, only 6000 CDs remain, which are sold at a 40% profit, meaning each sells for 1.4 times its cost of 1, totaling 8400. The overall profit is 8400 minus the 8000 cost, resulting in a 5% gain.

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