A used car dealer sold one car at a profit of 25 percent of

how can we solve this question using Weighted Average?

Let's call the dealer's purchase price for the first car "P1" and the purchase price for the second car "P2."

According to the information provided:

The dealer sold the first car at a profit of 25 percent, which means the selling price of the first car is 125% of the purchase price: 1.25 * P1 = $20,000.
The dealer sold the second car at a loss of 20 percent, which means the selling price of the second car is 80% of the purchase price: 0.8 * P2 = $20,000.
Now, we can solve for P1 and P2:

1.25 * P1 = $20,000
P1 = $20,000 / 1.25
P1 = $16,000

0.8 * P2 = $20,000
P2 = $20,000 / 0.8
P2 = $25,000

So, the dealer purchased the first car for $16,000 and the second car for $25,000.

To calculate the dealer's total profit or loss, we need to find the difference between the total selling price and the total purchase price:

Total Selling Price = $20,000 (first car) + $20,000 (second car) = $40,000
Total Purchase Price = $16,000 (first car) + $25,000 (second car) = $41,000

Now, let's calculate the profit or loss:

Total Profit or Loss = Total Selling Price - Total Purchase Price
Total Profit or Loss = $40,000 - $41,000
Total Profit or Loss = -$1,000

So, the dealer incurred a total loss of $1,000 for the two transactions combined. The correct answer is option C: $1,000 loss.