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CAT 2025 Slot 2 · Quant · Profit, Loss and Discount · medium

A dealer sells two items, each for ₹1,200. On the first he makes a profit of 20%, and on the second he incurs a loss of 20%. Find his overall loss or…

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A dealer sells two items, each for ₹1,200. On the first he makes a profit of 20%, and on the second he incurs a loss of 20%. Find his overall loss or profit percentage on the whole transaction.
  1. A. No profit, no loss
  2. B. Loss of 4%
  3. C. Profit of 4%
  4. D. Loss of 5%
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Answer: (B) Loss of 4%

CP of first item = 1200/1.20 = ₹1,000. CP of second item = 1200/0.80 = ₹1,500. Total CP = ₹2,500, Total SP = ₹2,400. Loss = ₹100, Loss% = 100/2500 × 100 = 4%. (When equal SP gives equal % profit and loss, there is always a net loss.)
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