Anwesha sells two handbags, one at a profit of 18% and the other at a loss of 18%. If the selling price of each handbag is ₹450, then what is the overall percentage of profit or loss?

Correct option is C

Given:

Profit percentage on the first handbag = 18%

Loss percentage on the second handbag = 18%

Selling price of each handbag = ₹450

The profit percentage and loss percentage are the same (P = 18%).

Concept Used:

In cases where two similar items are sold at the same selling price, with one sold at a profit and the other at a loss of the same percentage, there will always be an overall loss.

Formula Used:

Overall Loss Percentage = $$\frac{P^2}{100}$$​​

where P is the common profit/loss percentage.

Solution:

Applying the formula:

Overall Loss Percentage = $$\frac{(18)^2}{100}$$​​

​$$= \frac{324}{100} = 3.24\%$$​​