A trader purchases a gadget for Rs. 2,000 and sells it at a profit of 25%. He then purchases a second gadget for Rs. 2,400 and sells it at a loss of 10%. What is the overall profit or loss (in Rs.) from both transactions?

Correct option is A

Given:

Cost price of the first gadget = Rs. 2000
Profit on the first gadget = 25%
Cost price of the second gadget = Rs. 2400
Loss on the second gadget = 10%

Formula Used:

Selling Price (SP) = Cost Price (CP) + Profit (if profit) or Loss (if loss)
Profit or Loss = SP - CP

Solution:

For the first gadget:
Profit on the first gadget = $$2000 × \frac{25 }{100}$$​ = 500
Selling Price of the first gadget = 2000 + 500 = 2500
For the second gadget:
Loss on the second gadget = $$2400 × \frac{10 }{ 100 }$$​= 240
Selling Price of the second gadget = 2400 - 240 = 2160
Overall profit or loss:
Total Cost Price (CP) = 2000 + 2400 = 4400
Total Selling Price (SP) = 2500 + 2160 = 4660
Overall Profit = SP - CP = 4660 - 4400 = 260
Thus, the overall profit from both transactions is Rs. 260.