Select the correct answerA person bought two articles for the same price and sold them at a profit of 20% on one and a loss of 25% on the other. What is the overall profit or loss % made by him?Options2.5% Profit2.5% LossProfit 4.5%No Profit No loss
Question
Select the correct answerA person bought two articles for the same price and sold them at a profit of 20% on one and a loss of 25% on the other. What is the overall profit or loss % made by him?Options2.5% Profit2.5% LossProfit 4.5%No Profit No loss
Solution
Let's solve this step by step:
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Let's assume the cost price of each article is $100 (this makes it easier to calculate percentages).
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The first article is sold at a 20% profit, so it's sold for $120.
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The second article is sold at a 25% loss, so it's sold for $75.
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The total cost price for both articles is 100).
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The total selling price for both articles is 120 + $75).
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To find the overall profit or loss percentage, we subtract the total cost price from the total selling price, divide by the total cost price, and then multiply by 100 to get a percentage.
So, (195 - 200) / 200 * 100 = -2.5%
Since the result is negative, this means there was a loss. So, the correct answer is "2.5% Loss".
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