Mr Gosh purchased wrist watches worth Rs 60000. He sold one-third of them at a profit of 20% and remaining at a loss of 5%. Calculate his overall profit or loss percentage.
To calculate Mr Gosh's overall profit or loss percentage, we need to find out the total cost and the total selling price of the wristwatches.
First, let's find the cost of the wristwatches he sold at a profit of 20%:
Cost = 1/3 * Rs 60000 = Rs 20000
Profit = 20% of Rs 20000 = Rs (20/100) * 20000 = Rs 4000
Now, let's find the cost of the wristwatches he sold at a loss of 5%:
Cost = 2/3 * Rs 60000 = Rs 40000
Loss = 5% of Rs 40000 = Rs (5/100) * 40000 = Rs 2000
To find the overall profit or loss, we need to calculate the total profit and the total cost:
Total profit = Rs 4000 + 0 (since there was no profit from the watches sold at a loss) = Rs 4000
Total cost = Rs 60000
To calculate the overall profit or loss percentage, we can use the formula:
Profit or Loss % = (Total Profit / Total Cost) * 100
Profit or Loss % = (4000 / 60000) * 100 = 6.67%
Therefore, Mr Gosh has an overall profit percentage of 6.67%.
return on 1/3 of the 60000 investment with 20% profit
= (1/3)(1.2)(60,000)
= 24800
return on 2/3 of investment with a 5% loss
= (2/3)(.95(60000)
= 38000
total return = 62000
profit percentage = 2000/60000
= 1/30
= .03333.... or 3 1/3%