A cloth merchant sold half of his cloth at 40% profit, half

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A cloth merchant sold half of his cloth at 40% profit, half of remaining at 40% loss and the rest was sold at the cost price. In the total transaction his gain or loss will be

1. 20% gain
2. 25% loss
3. 10% gain
4. 15% loss

Correct Option: C

Let the merchant bought 100 metres of cloth for $ 100.
From question ,

∴ Total S.P = $		50 × 140	+	25 × 60	+ 25
		100		100

Total S.P = (70 + 15 + 25) = $ 110
Gain = 110 - 100 = $ 10

∴ Gain % =	10	× 100 = 10%
	100