A man sold two pens at Rs.12 each. On one, he gained 20% and on the other, he lost 20%. On the whole, he:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. lost Rs.1.
Selling price of each pen = Rs 12
On 1st pen:
Profit = 20%
Cost Price = Selling Price × 100/(100 + profit %)
The Cost price of the first pen = 12 × 100/(100 + 20) = Rs 10
On 2nd pen:
loss = 20%
Cost Price = Selling Price × 100/(100 - loss %)
The Cost price of the second pen = 12 × 100/(100 - 20) = Rs 15
Total Cost price = 10 + 15 = 25
Total Selling Price = 12 + 12 = 24
Loss = Cost price - Selling Price = 25 - 24 = Rs 1