Gurpreet sells two phones for ₹9,600 each. On one he makes a profit of 20% and on the other he makes a loss of 20%. What is his overall result?

Loss of ₹800Correct answerYour answerNo profit, no lossCorrect answerYour answerProfit of ₹800Correct answerYour answerLoss of ₹960Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

CP of the first phone = $9600 \times \frac{100}{120} = 8000$ , that is ₹8,000.
CP of the second phone = $9600 \times \frac{100}{80} = 12000$ , that is ₹12,000.
Total CP = ₹20,000 and total SP = ₹19,200.
Overall loss = ₹800 (4% of the total cost).

Worth noting

The 20% gain and the 20% loss do not cancel out. The loss is on the larger cost price, so the deal as a whole always ends in a loss.

Concept: Two articles at the same SP, equal % profit and loss
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsProfit and loss

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Gurpreet sells two phones for ₹9,600 each. On one he makes a profit of 20% and on the other he makes a loss of 20%. What is his overall result?

Explanation