Question: In a local shop, as part of promotional measures, the shop owner sells three different varieties of soap, one at a loss of 13 percent, another at a profit of 23 percent and the third one at a loss of 26 percent. Assuming that the shop owner sells all three varieties of soap at the same price, the approximate percentage by which average cost price is lower or higher than the selling price is
Let the S.P. of each type be Rs. 100
C.P. of soap sold at 23% profit = 100/1.23 ≅ Rs. 81
C.P. of soap sold at 26% loss = 100/0.74 ≅ Rs. 135
∴ Average C.P. = (115 + 81 + 135)/3 = Rs. 110.3
∴ % by which average C.P. is higher = (10.3/100) × 100 = 10.3%
Hence, option (a).