in ,

Matthew bought two cars last year. That year he sold both cars for $ 45,000 … »amazingreveal : Nigerian Education

Matthew bought two cars last year. That year, he sold both cars for $ 45,000 each. On the one hand he made 20% profit and on the other hand he made 20% loss. What was his net gain or loss?

The options are ON, Profit of $ 7,500, B, Loss of $ 3,750, C, $ 3,750 profit and D, $ 7,500 loss. Can you try this question? Solve and compare your answer with the solution below.

RECOMMENDED
A. JAMB CBT APP FOR 2020
B. SSCE, Jamb And Blogging Class

SOLUTION TO THE QUESTION

In business and accounting, the net result is a measure of a company’s profitability. It is the income of a company minus the manufacturing costs, expenses, depreciation, interest and taxes for an accounting period.

Now let the first car be called Car 1 and the second car is called Car 2,

Analyze Auto 1 (20% profit)

A.Jamb And Waec 2020 CBT Apps
B. Make Money Selling Apps

We don’t know the cost of Auto 1. So let it be x

Is 20% profit 20/100 times x

∴ x + 20/100 x = $ 45,000
Find and cross lcm
100x + 20x = $ 45,000 x 100
120x = $ 4,500,000

x = 4500000/120 = $ 37,500
Hence cost price for car 1 = $ 37,500

Analyze Auto 2 (20% loss)

We don’t know the cost of Auto 2. So let it be x

Is 20% profit 20/100 times x

∴ x – 20/100 x = $ 45,000
Find and cross lcm
100x – 20x = $ 45,000 x 100
80x = $ 4,500,000

x = 4500000/80 = $ 56,250
Hence cost price for car 2 = $ 56,250

Profit / loss = sales price-cost price
Tota sale price = $ 45000 + $ 45000 =$ 90,000
Total cost = $ 37,500 + $ 56,250 = $ 93,750

Profit / loss = $ 90,000 – $ 93,750 = $ -3,750. THE ANSWER IS OPTION B

The cost price is higher than the selling price, so there is a loss of $ 3,750

Auto 1 win: Retail Price – Cost Price = $ 45,000 – $ 37,500 = $ 7,500
Auto 2 loss: Selling price – cost price = $ 45,000 – $ 56,250 = $ 11,250

Hope you understand

Note: We are not the author of this content. For the Authentic and complete version,
Check its Original Source

Day 29 • D-Mom blog Mother

How much Google Adsense pays for a view and 1000 page views »amazingreveal : Nigerian Education