R buys two cars of same prices. He sells one at a profit of 12% and the other at a loss of 8%. His overall percentage of profit or loss is :
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 2% profit.
Let x be the cost price of each car
Let P be the overall profit or loss percentage
Selling price of car 1 (12% profit): 1.12x
Selling price of car 2 (8% loss): 0.92x
Total revenue from both sales: 1.12x + 0.92x = 2.04x
Total cost of both cars: 2x
Profit: 2.04x - 2x = 0.04x
Profit = (Profit/Cost) × 100% = (0.04x/2x) × 100% = 2%