A person sells two products for ₹500 each. He makes a 20% profit on one and incurs a 20% loss on the other. What is his net gain or loss on the whole transaction?
Show answer & explanation
Correct answer: B
Explanation
Given:
Selling price of both items = 500, 500
Profit on the first = 20%
Loss on the second = 20%
For the first item
500 = CP × 120/100
CP₁ = 500 × 100/120
CP₁ = 416.67
For the second item
500 = CP × 80/100
CP₂ = 500 × 100/80
CP₂ = 625
Total CP = 416.67 + 625 = 1041.67
Total SP = 500 + 500 = 1000
Loss = 1041.67 − 1000 = 41.67
Loss% = (41.67 / 1041.67) × 100 = 4%