Multiple choice

A man sells three articles, one at a loss of 10%, another at a profit of 20% and the third one at a loss of 25%. If the selling price of all the three is the same, find by how much percent is their average CP lower than or higher than their SP.

  1. 14.533 % lower

  2. 16.890 % higher

  3. 17.258 % higher

  4. 9.256 % higher
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let SP = 100 for each. CP1 = 100/0.9 = 111.11. CP2 = 100/1.2 = 83.33. CP3 = 100/0.75 = 133.33. Total CP = 327.77. Total SP = 300. Average CP = 109.25. Average SP = 100. Difference = 9.25. Percent = (9.25/100) * 100 = 9.25% higher.

AI explanation

Assume the selling price of each article is Rs. 300, making the total selling price Rs. 900. Using the cost price formula CP = (100 / (100 + loss or profit)) * SP, the cost prices are 300 * 100 / 90 = 333.33, 300 * 100 / 120 = 250, and 300 * 100 / 75 = 400. The total cost price is 333.33 + 250 + 400 = 983.33, and the average cost price is 983.33 / 3 = 327.78. The average cost price is lower than the selling price by 327.78 - 300 = 27.78, and the required percentage is (27.78 / 300) * 100 = 9.256% higher.

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