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John bought 2 shares and sold them for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of $10 (B) a profit of $8 (C) a loss of $8 (D) a loss of $10 (E) neither a profit nor a loss

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17 Apr 2015, 04:48

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John bought 2 shares and sold them for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of $10 (B) a profit of $8 (C) a loss of $8 (D) a loss of $10 (E) neither a profit nor a loss

Sold both shares for $96 each, 1 20% profit, 1 20% loss.

96% for 20% profit: 96 = 1.2x x = 80 96 - 80 = 16 profit

96% for 20% loss: 96 = 0.8x x = 120 120 - 96 = 24 loss

John bought 2 shares and sold them for $96 each. If he had a profit of [#permalink]

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17 Apr 2015, 04:53

Bunuel wrote:

John bought 2 shares and sold them for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of $10 (B) a profit of $8 (C) a loss of $8 (D) a loss of $10 (E) neither a profit nor a loss

Kudos for a correct solution.

$ Profit of the share sold at 20% profit = 120-96 20-? $16 profit on the sale of 1 share.

$ Loss of the share sold at 20% loss= 80-96 20-? $24 loss on the sale of 1 share.

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17 Apr 2015, 21:04

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Bunuel wrote:

John bought 2 shares and sold them for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of $10 (B) a profit of $8 (C) a loss of $8 (D) a loss of $10 (E) neither a profit nor a loss

Kudos for a correct solution.

for 2 products ,Whenever selling price is same and there is x% profit on one and x% loss on other then there is loss on whole transaction. Here , for first prodcut 96 = 1.2x x = 80 First Cost price = 80

For second product 96 = 0.8x x = 120 second cost price=120

total cost price =120+80=200 total selling price = 96+96 =192 Hence , loss of 8$
_________________

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19 Apr 2015, 03:38

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Bunuel wrote:

John bought 2 shares and sold them for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of $10 (B) a profit of $8 (C) a loss of $8 (D) a loss of $10 (E) neither a profit nor a loss

Kudos for a correct solution.

Cost price of each share=x Sale price of share A=0.8x Therefore, 0.8x=96 x=120 Loss=$24 Sale price of share B=1.2X=96 X=80 Profit=16 Net loss=$8 Answer C

John bought 2 shares and sold them for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of $10 (B) a profit of $8 (C) a loss of $8 (D) a loss of $10 (E) neither a profit nor a loss

Note that the question would have been straight forward had the COST price been the same, say $100. A 20% profit would mean a gain of $20 and a 20% loss would mean a loss of $20. Overall, there would have been no profit no loss.

Here the two shares are sold at the same SALE price. One at a profit of 20% on cost price which must be lower than the sale price (to get a profit) and the other at a loss of 20% on cost price which must be higher than the sale price (to get a loss). 20% of a lower amount will be less in dollar terms and hence overall, there will be a loss.

The loss % = (20)^2/100 % = 4%.

But we need the amount of loss, not the percentage of loss.

Total Sale price of the two shares = 2*96 = $192

Since there is a loss of 4%, the 96% of the total cost price must be the total sale price

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John bought 2 shares and sold them for $96 each. If he had a profit of 20% on the sale of one of the shares but a loss of 20% on the sale of the other share, then on the sale of both shares John had

(A) a profit of $10 (B) a profit of $8 (C) a loss of $8 (D) a loss of $10 (E) neither a profit nor a loss

For the one share earning a 20% profit, we can set up the following equation in which c = cost:

Profit = 0.2c

96 - c = 0.2c

96 = 1.2c

80 = c

Thus, John made 96 - 80 = 16 dollars on the sale.

For the share with a 20% loss, we can set up the following equation in which c = cost:

Profit = -0.2c

96 - c = -0.2c

96 = 0.8c

120 = c

Thus, John lost 120 - 96 = 24 dollars on the sale.

So, overall he lost 8 dollars.

Answer: C
_________________

Jeffery Miller Head of GMAT Instruction

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