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CAT 2022 Slot 2 · Quant · Profit, Loss and Discount · medium

A dealer sells two items at ₹2400 each. On the first he makes a profit of 20% and on the second he incurs a loss of 20%. What is his overall…

Single correct option

A dealer sells two items at ₹2400 each. On the first he makes a profit of 20% and on the second he incurs a loss of 20%. What is his overall percentage result on the transaction?
  1. A. No profit no loss
  2. B. 4% loss
  3. C. 4% profit
  4. D. 8% loss
Show answer and solution

Answer: (B) 4% loss

CP of item 1 = 2400/1.2 = ₹2000. CP of item 2 = 2400/0.8 = ₹3000. Total CP = ₹5000, total SP = ₹4800, so overall loss = ₹200 on ₹5000 = 4%. Shortcut: whenever equal SPs give equal and opposite %profit/loss x, the net result is always a loss of (x/10)² % = (20/10)² = 4% loss — never a wash, since the CPs differ.
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Original question written in the CAT 2022 Slot 2 pattern and checked twice for the correct answer. Not an official question paper. How we write and check questions · Corrections policy · Report a mistake