Here, we have to find the total selling price of the two horses and then compare it with the total cost price of those two horses to determine the net profit/loss.
Given, Cost price of each horse is C.P.=18000
Profit percentage on selling first horse is 20%
Loss percentage on selling second horse is 20%
Since, Amount of profit or loss=Profit or loss percentage100×(C.P)
Amount of profit gained by selling first horse = 20100×(18000)=Rs 3600
Amount of loss occurred by selling second horse = 20100×(18000)=Rs 3600
Also we know that when profits occurs, S.P.=C.P.+Amount of profit gained
and when loss occurs, S.P.=C.P.−Amount of loss occurred
Using above formulas, we can write
For selling the first horse (profit occurs), (S.P.)1=18000+3600=Rs 21600
For selling the second horse (loss occurs), (S.P.)2=18000−3600=Rs 14400
Now, Total cost price of two horses is (C.P.)T=2×(Cost price of each horse)=2×18000=Rs 36000
Total selling price of two horses is (S.P.)T=(S.P.)1+(S.P.)2=21600+14400=Rs 36000
Clearly, we can see that the selling price of the two horses is equal to the cost price of those two horses which indicates in total there is neither profit nor loss.
So, Mike has gained or lost nothing.
Note: In these types of problems, the total cost price of all the items is compared with the total selling price of all the items. If the selling price is higher than the cost price, then profit occurs and if the cost price is higher than selling price then loss has occurred and if both selling price and cost price are equal then neither profit nor loss occurs.
Clearly, we can see that the selling price of the two horses is equal to the cost price of those two horses which indicates in total there is neither profit nor loss. So, Mike has gained or lost nothing
Answers & Comments
Here, we have to find the total selling price of the two horses and then compare it with the total cost price of those two horses to determine the net profit/loss.
Given, Cost price of each horse is C.P.=18000
Profit percentage on selling first horse is 20%
Loss percentage on selling second horse is 20%
Since, Amount of profit or loss=Profit or loss percentage100×(C.P)
Amount of profit gained by selling first horse = 20100×(18000)=Rs 3600
Amount of loss occurred by selling second horse = 20100×(18000)=Rs 3600
Also we know that when profits occurs, S.P.=C.P.+Amount of profit gained
and when loss occurs, S.P.=C.P.−Amount of loss occurred
Using above formulas, we can write
For selling the first horse (profit occurs), (S.P.)1=18000+3600=Rs 21600
For selling the second horse (loss occurs), (S.P.)2=18000−3600=Rs 14400
Now, Total cost price of two horses is (C.P.)T=2×(Cost price of each horse)=2×18000=Rs 36000
Total selling price of two horses is (S.P.)T=(S.P.)1+(S.P.)2=21600+14400=Rs 36000
Clearly, we can see that the selling price of the two horses is equal to the cost price of those two horses which indicates in total there is neither profit nor loss.
So, Mike has gained or lost nothing.
Note: In these types of problems, the total cost price of all the items is compared with the total selling price of all the items. If the selling price is higher than the cost price, then profit occurs and if the cost price is higher than selling price then loss has occurred and if both selling price and cost price are equal then neither profit nor loss occurs.
Verified answer
Answer:
Clearly, we can see that the selling price of the two horses is equal to the cost price of those two horses which indicates in total there is neither profit nor loss. So, Mike has gained or lost nothing