Correct option is A
Given:
Article 1:
Selling Price (SP1) = Cost Price (CP1) + 20% of CP1
Article 2:
Selling Price (SP2) = Cost Price (CP2) - 20% of CP2
SP1 = CP2
Formula used:
Effective Profit/Loss Percentage =
Total CP Total SP − Total CP ×100
Solutions:
Let CP1 = x
SP1 = x + 0.2x = 1.2x
SP1 = CP2 => CP2 = 1.2x
SP2 = CP2 - 0.2(CP2) = 1.2x - 0.24x = 0.96x
Total CP = x + 1.2x = 2.2x
Total SP = 1.2x + 0.96x = 2.16x
Effective Loss Percentage =
2.2x2.16x−2.2x×100
=>2.2x−0.04x×100=>2.2−0.04×100=>−1.8% Thus, the correct answer is (A).