A paper printing company earn a profit of 40% by selling the A4 size papers at the marked price. But during transportation 8% of the papers were get spoiled due to rain and 32% could be sold only at 75% of the cost price. Thus the remaining 60% papers could be sold at the expected price. What is the profit or loss in the whole process?
Answer with explanationAnswer: Option B
Let the number of papers produced be 100 and the cost price of diary be Rs.1 then
Total cost incurred = 100 * 1 = 100
Total sale price = 32 * 0.75 + 60 * 1.4 = 108
Therefore total profit = Rs.8
Hence there is 8% profit