A sold a machine to B at 20% profit. B sold it C at 15% loss. What be A’s loss or gain % if he had sold it to C at the price at which C bought it from B?

A Gain of 2%

B Loss of 2%

C Gain of 5%

D Gain of 1%

E Loss of 1%

Correct Answer: Option A

Let’s assume that the price at which A bought the machine is Rs. 100.

∴ Cost price for A = Rs. 100

Now, when A sold it to B, the gain% was 20.

∴ Selling price = Cost price + (Gain% × Cost price)

⇒ Selling price for A= 100 + (20% × 100) = 100 + 20 = Rs. 120

∴ Cost price for B = Rs. 120

Now, B sold it at a loss of 15% to C

∴ Selling price = Cost price – (loss% × Cost price)

⇒ Selling price for B= 120 – (15% × 120) = 120 – (15/100) × 120

⇒ Selling price = 120 – 18 = Rs. 102

∴ Cost price for C = Rs. 102

Now, if A cells the machine to C at the price at which C bought it from B,

Selling price for A= Rs. 102

∴ Gain% $= \frac{{selling\;price - cost\;price}}{{cost\;price}} \times 100 = \frac{{102 - 100}}{{100}} \times 100 = 2$

⇒ A would have incurred 2% gain, had he sold the machine to C, at the price at which C bought it from B.

$= \frac{s e l l i n g p r i c e - c o s t p r i c e}{c o s t p r i c e} \times 100 = \frac{102 - 100}{100} \times 100 = 2$