A man buys a set of 3 identical watches at a total cost of Rs. 4,500. He sells them at Rs. 1,800, Rs. 1,700, and Rs. 1,600, respectively. What is the overall profit or loss?
- (a)Rs. 100 loss
- (b)Rs. 100 profit
- (c)Rs. 600 profit
- (d)Rs. 600 loss
Answer
Why
Correct — C. Overall profit or loss compares the total selling price with the total cost price.
Total cost price (given) = Rs. 4,500
Add the three selling prices: 1,800 + 1,700 + 1,600 = Rs. 5,100
Subtract: 5,100 − 4,500 = Rs. 600
Selling price is above cost, so this is a profit of Rs. 600 → option (c)
Why the others are wrong
- (a)Rs. 100 loss — Every watch sells above its Rs. 1,500 cost, so a loss is impossible. Together the three bring in Rs. 5,100 against Rs. 4,500 spent.
- (b)Rs. 100 profit — Rs. 100 is the gain on the Rs. 1,600 watch alone (1,600 − 1,500). Adding the Rs. 300 and Rs. 200 gains on the first two watches gives Rs. 600.
- (d)Rs. 600 loss — The amount is right, the direction is wrong. Total SP (Rs. 5,100) exceeds total CP (Rs. 4,500), and SP above CP is a profit, not a loss.
Concept
Overall profit or loss on several items is total SP minus total CP. A positive result is a profit, a negative one a loss.
The watches are identical, so each costs 4,500 ÷ 3 = Rs. 1,500. Item by item, the gains are 300, 200 and 100, and they add to the same Rs. 600.
The per-item route works only because 'identical' fixes each watch's cost at Rs. 1,500.
The falling prices, 1,800 then 1,700 then 1,600, can read like a slide into loss. Even the lowest is above the Rs. 1,500 that one watch cost.
Key facts
- Overall profit = total SP − total CP.
- Cost of one of n identical items = total cost ÷ n: 4,500 ÷ 3 = 1,500.
- Profit % = profit ⁄ CP × 100, so this sale earns 600 ⁄ 4,500 × 100 ≈ 13.33%.
Study next
Common traps
- Reading the falling prices as a loss: even Rs. 1,600 is above the Rs. 1,500 cost of one watch.
- Stopping at one watch's gain, Rs. 100 on the last sale, instead of adding all three.
- Getting Rs. 600 and then attaching the wrong sign: SP above CP is a profit.
Here every price is given, so only the totals need comparing. 12 Sep 2025, 09:00, Quant Q.13 sets up the same total-revenue-against-total-cost comparison around donated and free toy cars, and it ends in a 4% loss.
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