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 an…

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?

1. A. 4% loss (Correct answer)
2. B. 4% profit
3. C. 5% loss
4. D. 5% profit

Correct Answer

Option A — 4% loss

Detailed Solution & Explanation

The correct answer is 4% loss.

Key Points

• Cost per car = 90,000 / 1,200 = ₹75. Of 1,000 non-donated cars, the '2 free per 8 bought' offer means every 10 distributed contains 8 paid + 2 free, so 1,000 cars → 800 paid.
• Selling price after 10% discount = 120 × 0.9 = ₹108.
• Revenue = 800 × 108 = ₹86,400.
• Loss = 90,000 − 86,400 = ₹3,600, i.e. (3,600/90,000) × 100 = 4% loss.
• The donation and the free-goods scheme both shrink the paying quantity — account for every 'free' unit before computing revenue.