A merchant sells a gadget for Rs. 60, earning a certain percentage of profit. On another occasion, during a clearance sale, he offers a 20% discount on the marked price and sells the same gadget for Rs. 36, incurring a loss equal in percentage to the earlier profit.

Consider the following statements:
Statement I: The cost price of gadget is Rs. 45.
Statement II: The marked price of the gadget was Rs. 48.

Select the correct answer from the options below:
(a) Only Statement I is correct.
(b) Only Statement II is correct.
(c) Both Statements I and II are correct.
(d) None of the Statements is correct.

Question

A merchant sells a gadget for Rs. 60, earning a certain percentage of profit. On another occasion, during a clearance sale, he offers a 20% discount on the marked price and sells the same gadget for Rs. 36, incurring a loss equal in percentage to the earlier profit.

Consider the following statements:
Statement I: The cost price of gadget is Rs. 45.
Statement II: The marked price of the gadget was Rs. 48.

Select the correct answer from the options below:
(a) Only Statement I is correct.
(b) Only Statement II is correct.
(c) Both Statements I and II are correct.
(d) None of the Statements is correct.

ONLiNE UPSC · Accepted Answer

Let the cost price be C.
Profit percentage in the first sale: (60 &ndash; C)/C &times; 100
Loss percentage in the second sale: (C - 36)/C &times; 100
Equating the profit and loss percentages:
(60 &ndash; C)/C &times; 100 = (C - 36)/C &times; 100
Solving gives: C = Rs. 48.
Marked price = 36/0.8 = Rs. 45
Thus, cost price = Rs. 48, and marked price = Rs. 45.
Both Statements are incorrect.
Hence, option d is correct.

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E Question 1	⏱ 0
A merchant sells a gadget for Rs. 60, earning a certain percentage of profit. On another occasion, during a clearance sale, he offers a 20% discount on the marked price and sells the same gadget for Rs. 36, incurring a loss equal in percentage to the earlier profit. Consider the following statements: Statement I: The cost price of gadget is Rs. 45. Statement II: The marked price of the gadget was Rs. 48. Select the correct answer from the options below: (a) Only Statement I is correct. (b) Only Statement II is correct. (c) Both Statements I and II are correct. (d) None of the Statements is correct.