Two items are each sold for the same price. One gives a gain of $25\%$ and the other a loss of $25\%$. The overall result is:
Practice this question from Chapter Mock 4: Profit and Loss, with options and an explanation.
Question
Two items are each sold for the same price. One gives a gain of $25\%$ and the other a loss of $25\%$. The overall result is:
Option A
No profit, no loss
Option B
6.25% gain
Option C — Correct answer
6.25% loss
Correct choice.
Option D
12.5% loss
Explanation
Equal gain and equal loss percentages on the same selling price produce a loss. Shortcut: net loss $=\frac{25^2}{100}=6.25\%$.