A person sells two items for ₹200 each. He gains 25% on one and loses 25% on the other. What is his total loss percentage in the entire transaction?
Show answer & explanation
Correct answer: B
Explanation
Given:
Selling price of both items = ₹200 per item
Profit on the first item = 25%
Loss on the second item = 25%
First item
SP = 200
25% profit
CP = 200 / 1.25 = 160
Second item
SP = 200
25% loss
CP = 200 / 0.75 = 266⅔
Total CP = 160 + 266⅔ = 426⅔
Total SP = 200 + 200 = 400
Loss = 426⅔ − 400 = 26⅔
Loss percentage = (26⅔ / 426⅔) × 100 = 6.25%