A man sells three articles, one at a loss of 25%, another at a profit
Right Answer is: A
We have to calculate: (average CP – average SP)/average SP.
Here, the selling price is equal for all the three articles.
Let’s assume the individual selling price of each article be 100.
So, the average SP for the three articles is 100.
Now the cost price of the articles
First article = 100/75% = 133.33
Second Article = 100/120% = 83.33
Third Article = 100/90% = 111.11
Now, the average CP of the three articles = Total cost price/No. of articles = 327.77/3 = 109.2567.
Hence, (average CP – average SP)/average SP = = 9.2567%. higher