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A man sells two articles for $240 each. On one he gains 20% and on the other he loses 20%. What is his overall gain or loss percentage?

GMAT · 2021 · Quantitative
Question:
A man sells two articles for $240 each. On one he gains 20% and on the other he loses 20%. What is his overall gain or loss percentage?

Options

(A) 4% loss
(B) 2% loss
(C) No gain or loss
(D) 2% gain
(E) 4% gain
Answer: (A) 4% loss

Explanation:
For gain article: SP = 240, gain = 20%, so CP = 240/1.2 = 200. For loss article: SP = 240, loss = 20%, so CP = 240/0.8 = 300. Total CP = 200 + 300 = 500. Total SP = 240 + 240 = 480. Loss = 500 - 480 = 20. Loss % = (20/500) × 100 = 4%.

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