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Two articles are sold by a traders. One of them is sold for 20% profit. Its selling price equals the cost price of the other article which is sold for
Question

Two articles are sold by a traders. One of them is sold for 20% profit. Its selling price equals the cost price of the other article which is sold for 20% loss. Find the effective profit loss percentage approximately.

A.

1.8% loss

B.

2.5% profit

C.

4% loss

D.

1.8% profit.

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 SP  Total CP  Total CP ×100\frac{\text { Total SP }- \text { Total CP }}{\text { Total CP }} \times 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 = 2.16x2.2x2.2x×100\frac{2.16 x-2.2 x}{2.2 x} \times 100​​
=>0.04x2.2x×100=>0.042.2×100=>1.8%\begin{aligned}& \Rightarrow \frac{-0.04 x}{2.2 x} \times 100 \\& \Rightarrow \frac{-0.04}{2.2} \times 100 \\& \Rightarrow-1.8 \%\end{aligned} 
Thus, the correct answer is (A).​​

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