Concept:Calculate the loss on the first item to get its selling price, then use that amount as the cost of the second item and calculate its profit. Add both costs and both selling prices to find the overall profit.
Explanation:First product cost price:
CP1=6000 Rs.
Loss is
20%, so loss amount =
0.20×6000=1200 Rs.
Selling price of first product:
SP1=6000−1200=4800 Rs.
This
4800 Rs becomes the cost price of the second product:
CP2=4800 Rs.
Second product is sold at a
40% profit, so profit amount =
0.40×4800=1920 Rs.
Selling price of second product:
SP2=4800+1920=6720 Rs.
Total cost for both transactions:
CPtotal=6000+4800=10800 Rs.
Total selling price:
SPtotal=4800+6720=11520 Rs.
Overall profit =
SPtotal−CPtotal=11520−10800=720 Rs.
Answer:720 Rs (Option E)