Answer :
cost of first buffalo =20000 x 100/105
cost of second = 20000 x 100/90
total cost = 20000( 100/105 + 100/90)
profit/ loss = 40000 - 20000( 100/105 +100/90)
= 20000 (2- (600+700)/630)
= 20000 x (1260-1300)/630 = -80000/63= -1269.8 (loss) or -3.17%
cost of second = 20000 x 100/90
total cost = 20000( 100/105 + 100/90)
profit/ loss = 40000 - 20000( 100/105 +100/90)
= 20000 (2- (600+700)/630)
= 20000 x (1260-1300)/630 = -80000/63= -1269.8 (loss) or -3.17%