What is the outcome of a transaction in which a trader sells 20 bats for the same price as the cost price of 25 bats?
Question
What is the outcome of a transaction in which a trader sells 20 bats for the same price as the cost price of 25 bats?
Solution
This is a problem of profit and loss in business transactions. Here's how to solve it:
Step 1: Let's assume the cost price of 1 bat is 25.
Step 2: The trader sells 20 bats for $25 (since it's mentioned that he sells 20 bats for the same price as the cost price of 25 bats).
Step 3: The cost price for 20 bats (since we assumed the cost price of 1 bat is 20.
Step 4: Now, subtract the cost price of 20 bats from the selling price of 20 bats. So, 20 = $5.
So, the outcome of the transaction is that the trader makes a profit of $5.
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