Question

A toy manufacturer produced 1200 toy cars at a total cost of ₹90,000. He donated 200 cars to a charity event. For the rest, he announced a 10% discount on the market price of ₹120 per car. He also offered 2 toy cars free for every 8 toy cars purchased. If all 1200 toy cars were distributed, what is his overall gain or loss percentage?

• A. 4% loss
• B. 4% profit
• C. 5% loss
• D. 5% profit

Answer 1

Answer:

A. 4% loss

Total Cost Price

1200 toy cars cost ₹90,000
$\text{CP per car} = \frac{90000}{1200}$= ₹75

Donation

200 cars are donated → no revenue

Remaining cars:
$1200 - 200 = 1000 \text{ cars}$

Selling Scheme

Market price = ₹120
Discount = 10%
$\text{Selling price per car} = 120 - 12$= ₹108

Now include bonus scheme:
“2 free for every 8 bought” → effectively:

• For every 10 cars given (8 paid + 2 free), he sells only 8

So effective paid-to-delivered ratio:
$\frac{8}{10}$

He must distribute 1000 cars:

Let paid cars = x
Then:
$\frac{10}{8}x = 1000$
$\Rightarrow x = 800$

So:

• Paid cars sold = 800

• Free cars given = 200 (already accounted in remaining 1000)

  Revenue

Only 800 cars generate revenue:

$800 \times 108 = 86,400$

Total Cost

Entire production cost:

₹90,000

Profit/Loss

$86,400 - 90,000 = -3,600$

So there is a loss of ₹3,600

Loss Percentage

$\frac{3600}{90000} \times 100 = 4\%$

Final Answer:

$\boxed{4\% \text{ loss}}$