Difficulty: Medium
Correct Answer: 4% loss
Explanation:
Introduction / Context:
Selling two items at the same selling price with equal profit and loss percentages leads to an overall loss, not break-even. This is a classic result due to different cost prices. We compute total cost and compare with total selling price.
Given Data / Assumptions:
Concept / Approach:
Compute the individual cost prices (CP) from SP and profit/loss percentage. Then sum the CPs to get total cost. Sum SPs to get total SP. Compare to find overall profit or loss percentage relative to total CP.
Step-by-Step Solution:
Verification / Alternative check:
Equal and opposite percentages around the same SP do not cancel because the CPs are unequal; the product (1.20)*(0.80) = 0.96 shows a 4% net loss effect.
Why Other Options Are Wrong:
Common Pitfalls:
Assuming profit and loss cancel to zero, or averaging the percentages arithmetically without considering different bases.
Final Answer:
Discussion & Comments