Difficulty: Medium
Correct Answer: 16.66%
Explanation:
Introduction / Context:
The trader sells two items at the same price and neither gains nor loses overall, meaning total selling price equals total cost price. Given a profit on one item, the other must incur an offsetting loss. This is a standard paired transaction scenario.
Given Data / Assumptions:
Concept / Approach:
Let chair CP = x. Then 1.25x = 4000 ⇒ x = 3200. Let table CP = y. Total CP = x + y must equal total SP = 8000. Hence y = 8000 − 3200 = 4800. Table loss% = (y − SP)/y * 100.
Step-by-Step Solution:
Chair: 1.25x = 4000 ⇒ x = 3200Total CP = x + y = 3200 + yTotal SP = 4000 + 4000 = 8000 ⇒ 3200 + y = 8000 ⇒ y = 4800Loss on table = 4800 − 4000 = 800Loss% = 800/4800 * 100 = 16.666…% ≈ 16.66%
Verification / Alternative check:
Total CP = 3200 + 4800 = 8000 equals total SP = 8000, confirming no overall gain or loss.
Why Other Options Are Wrong:
16% and 16.33% are approximations from rounding errors; 18.66% and 20% are too large given the needed balance.
Common Pitfalls:
Applying average of percentages instead of the actual cost bases; percentages must be computed on the correct cost price for each item.
Final Answer:
16.66%
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