Que: A trader buys a batch of 120,000 computer chips for $3,600,000. He sells ....

Solution: Total cost of the 120,000 computer chips = $3,600,000

=> Cost of \(\frac{2}{5}\) of the above computer chips = $ 3,600,000 * \(\frac{2}{5}\) = $1, 440, 000.

These were sold at a 25% higher than the cost price. Thus, the selling price of the above computer chips

=> \(\frac{125}{100}\) *$1,440,100 = $1, 800, 000

Cost of the remaining computer chips = $(3, 600, 000 − 1, 440, 000) = $2, 160, 000

Later, these remaining computer chips were sold at a 25% lower than the cost price. Thus, the selling price of the above computer chips

=> \(\frac{75}{100}\) * $2, 160, 000= $1, 620, 000

Thus, total selling price = $(1, 800, 000 + 1, 620, 000) = $3, 420, 000.

Since total selling price (= $3,420,000) < total cost price (= $3,600,000), there is a loss

Thus, percent loss = \(\frac{\left(Cost\ price\ -\ Selling\ price\right)}{Cost\ price}\) × 100 (%)

=> \(\frac{\left(3,600,000\ -\ 3,420,000\right)}{3,600,000}\) × 100 (%) = -5% (Loss)

Therefore, B is the correct answer.

Answer B