A seller sells two tables at ₹1500 each, making 20% profit on one and 20% loss on the other. What is the net result on the overall deal?

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:

  • SP of each table = ₹1500.
  • One at 20% profit; one at 20% loss.


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:

For 20% profit: SP = 1.20 * CP ⇒ CP1 = 1500 / 1.20 = 1250.For 20% loss: SP = 0.80 * CP ⇒ CP2 = 1500 / 0.80 = 1875.Total CP = 1250 + 1875 = 3125.Total SP = 1500 + 1500 = 3000.Loss = 3125 − 3000 = 125.Loss % = 125 / 3125 * 100% = 4%.


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:

  • 4% profit, 10% loss/profit: Contrary to the computation; the exact effect is 4% loss.


Common Pitfalls:
Assuming profit and loss cancel to zero, or averaging the percentages arithmetically without considering different bases.


Final Answer:

4% loss

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