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Jhun Jhunwala makes 1000 toys and incurs a cost of Rs. 1.2 for each toy. He marks-up the price in such a way that if he sells only 70% of manufactured toys he will realize 16.66% overall profit. He sells only 750 articles at the marked price since rest of the toys are found to be defective so can't be sold. What is the net profit or loss of Jhun Jhunwala?
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- 14.44% loss
- 25% profit
- 33.33% profit
- none of these
Correct Option: B
Total cost price = 1000 x 1.2 = Rs. 1200
Expected selling price = 700 x selling price per toys = 1200 X 1.1666 = 1400
→ Selling price per toys = Rs. 2 per toy
Now the real selling price = 750 x 2 = Rs.1500
∴ Profit = Rs. 300 = (1500 - 1200)
∴ Profit % = ( 300 / 1200 ) x 100 = 25%
