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KarishmaB
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A used car dealer sold one car at a profit of 25 percent of 16 Jan 2022, 22:03
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djdela
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

A. 1000 profit
B. 2000 profit
C. 1000 loss
D. 2000 loss
E. 3334 loss
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himgkp1989
For profit and loss, the weights are always the cost price. It is possible to use weighted averages here though not worth the effort since we don't have CPs and will need to calculate those first.

Car1:
Profit = 25%, SP = 20k, CP = 20*(4/5) = 16k

Car 2:
Profit = -20%, SP = 20k, CP = 20*(5/4) = 25k

Cavg = (25 * 16k - 20*25k)/(16k + 25k) = -100/41%

Total CP = 16k + 25k = 41k

Profit/Loss amount \( = \frac{100}{41 *100} * 41k = -$1000\)

Answer (C)

I would prefer the logical approach I have discussed in a previous post.
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A used car dealer sold one car at a profit of 25 percent of 16 Jan 2022, 23:29
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net selling price of both cars ; 40,000
Original price of the car which was sold with 25% profit ; 20,000/1.25 ; 16000
Original price of the car which was sold with loss of 20% ; 20,000/.8 ; 25000
Net buying cost of dealer ; 41,000
Net profit / loss; 40,000-41,000 ; 1,000
OPTION C

djdela
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

A. 1000 profit
B. 2000 profit
C. 1000 loss
D. 2000 loss
E. 3334 loss
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A used car dealer sold one car at a profit of 25 percent of 03 Mar 2022, 17:09
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KarishmaB
djdela
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

a) 1000 profit
b) 2000 profit
c) 1000 loss
d) 2000 loss
e) 3334 loss

Logical approach:

Car 1 - profit of 25% i.e. 1/4 i.e. 1 part profit for 4 parts of cost price. So selling price ($20,000) has total 5 parts (each being $4000) out of which 1 part is profit i.e. $4000.
Car 2 - loss of 20% i.e. 1/5 i.e. 1 part of loss out of 5 parts of cost price was removed to get selling price ($20,000) which has 4 parts now. So each part is $5000 and the loss is 1 part i.e. $5000.

Overall, loss of $5000 - $4000 = $1000
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Jeez, this just saved my life. So easy and elegant. I hope I see a profit/loss question on test days. It is simply ratios!!!!!!!!!
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A used car dealer sold one car at a profit of 25 percent of 02 Jan 2023, 07:37
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how can we solve this question using Weighted Average?
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A used car dealer sold one car at a profit of 25 percent of 20 Oct 2023, 02:29
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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.
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A used car dealer sold one car at a profit of 25 percent of 27 Jan 2025, 03:17
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Hi KarishmaB, why in this case the concept "
With the same selling price, if we have a profit of a% on one and a loss of a% on another, in all we always have a loss of (a^2/100)%" seems to not work?
And nobody here use it in this question
KarishmaB
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djdela
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

a) 1000 profit
b) 2000 profit
c) 1000 loss
d) 2000 loss
e) 3334 loss

Logical approach:

Car 1 - profit of 25% i.e. 1/4 i.e. 1 part profit for 4 parts of cost price. So selling price ($20,000) has total 5 parts (each being $4000) out of which 1 part is profit i.e. $4000.
Car 2 - loss of 20% i.e. 1/5 i.e. 1 part of loss out of 5 parts of cost price was removed to get selling price ($20,000) which has 4 parts now. So each part is $5000 and the loss is 1 part i.e. $5000.

Overall, loss of $5000 - $4000 = $1000

Quote:

I can understand “1 part profit for 4 parts of cost price“” by applying formula profit%=\frac{proft}{cost}

But I didn't fully understand how did you get "So selling price ($20,000) has total 5 parts (each being $4000) out of which 1 part is profit i.e. $4000"

Can you please elaborate more?

If for every 4 parts cost price, we have 1 part profit, what is the selling price in terms of parts?

Selling price = Cost price + Profit
Selling price = 4 parts + 1 part = 5 parts.

These 5 parts are actually $20,000 so each part must be 20,000/5 = $4000

Since cost price is 4 parts, it must be 4000*4 = $16,000
and since profit is 1 part, it must be 4000*1 = $4000
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A used car dealer sold one car at a profit of 25 percent of 28 Jan 2025, 06:27
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If one is to guess, it will be a loss as 125% of something (smaller vale) is equal to 80% of something else (larger value). So it eliminates A and B and increase odds of guessing the right answer
djdela
A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another car at a loss of 20 percent of the dealers purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

A. 1000 profit
B. 2000 profit
C. 1000 loss
D. 2000 loss
E. 3334 loss
Show more
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A used car dealer sold one car at a profit of 25 percent of 29 Jan 2026, 16:25
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