A toy manufacturer produced 1200 toy cars at a total cost of ₹90,000. He donated 200 cars to a charity event. For the rest, he announced a 10% discount on the market price of ₹120 per car. He also offered 2 toy cars free for every 8 toy cars purchased. If all 1200 toy cars were distributed, what is his overall gain or loss percentage?

Correct — A. All 1,200 cars were made, so the cost is the full ₹90,000. Only the paid-for cars bring in money.

Cars left after the donation = 1,200 − 200 = 1,000
Price after 10% discount = 120 × 0.9 = ₹108
Pay for 8, take 10 → paid cars = 1,000 × 8⁄10 = 800

Revenue = 800 × 108 = ₹86,400
Loss = 90,000 − 86,400 = ₹3,600
Loss % = 3,600 ÷ 90,000 × 100 = 4% → option (a).

Why the others are wrong

• (b)
  4%profit — Right size, wrong direction. Revenue of ₹86,400 falls ₹3,600 short of the ₹90,000 cost, so the 4% is a loss, not a profit.
• (c)
  5% loss — A 5% loss means revenue of ₹85,500. The 800 paid cars bring in ₹86,400, so the shortfall is ₹3,600 — 4% of ₹90,000, not 5%.
• (d)
  5% profit — A 5% profit needs revenue of ₹94,500, but only 800 of the 1,200 cars are paid for, at ₹108 each. That is ₹86,400, below cost.

Two things cut revenue without cutting cost: the donated cars and the free cars. Cost stays ₹90,000 because all 1,200 cars were produced.

A 2-free-for-every-8 offer means 10 cars leave for every 8 paid for. So only 8⁄10 of the 1,000 cars earn money.

Gain or loss % is measured on the cost price, not on the revenue.

Key facts

• Cost per car = ₹90,000 ÷ 1,200 = ₹75.
• 2 free for every 8 purchased means paying for 8 of every 10 cars, an effective 20% discount.
• Loss % = loss ÷ cost price × 100.

Common traps

• Reading 2 free for every 8 as 2 free out of every 8 cars, which leaves 750 paid cars instead of 800.
• Leaving the 200 donated cars out of the cost, when they were produced and paid for.
• Dividing the ₹3,600 loss by the ₹86,400 revenue, which gives about 4.17%.

No directly related past PYQ was found.