Profit and Loss — Ram buys 800 eggs at ₹ 3.75 per dozen. He sells 450 eggs at 2 for ₹ 1 and the remaining 350 eggs at 5 for ₹ 2. What is his overall percentage gain?

Difficulty: Medium

Correct Answer: 46%

Explanation:


Introduction / Context:
Mixed-rate sales problems require converting all prices to per-unit values and then summing revenues across segments. The cost is based on a per-dozen rate and must be converted to per-egg to match selling units.


Given Data / Assumptions:

  • Purchase: 800 eggs at ₹ 3.75 per dozen ⇒ CP per egg = 3.75 / 12.
  • Sales: 450 eggs at 2 for ₹ 1; 350 eggs at 5 for ₹ 2.
  • No wastage; all eggs are sold.


Concept / Approach:
Compute total cost and total revenue separately. Then percentage gain = (Revenue − Cost)/Cost * 100. Careful unit handling is essential: “per dozen” to “per egg”, and “k for ₹ m” to “per egg”.


Step-by-Step Solution:

CP per egg = 3.75 / 12 = 0.3125 Total cost = 800 * 0.3125 = 250 Revenue from 450 eggs at 2 for ₹ 1 ⇒ SP per egg = 0.50 ⇒ 450 * 0.50 = 225 Revenue from 350 eggs at 5 for ₹ 2 ⇒ SP per egg = 0.40 ⇒ 350 * 0.40 = 140 Total revenue = 225 + 140 = 365 Gain = 365 − 250 = 115 ⇒ Gain% = 115/250 * 100 = 46%


Verification / Alternative check:
Compute per dozen equivalent revenues to cross-check; the ratio remains consistent at 46% gain.


Why Other Options Are Wrong:
28%, 36%, 14%, and 32% mismatch the exact arithmetic from the given rates and quantities.


Common Pitfalls:
Averaging selling rates without weighting by quantities; failing to convert per-dozen cost to per-egg cost before comparing to per-egg SPs.


Final Answer:
46%

More Questions from Profit and Loss

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion