SOLUTION: A salesman sold 2 refrigerators for $1200 each. The first sold at 20% profit and the second was sold at 20% loss. Find the salesman's net profit or loss.

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: A salesman sold 2 refrigerators for $1200 each. The first sold at 20% profit and the second was sold at 20% loss. Find the salesman's net profit or loss.      Log On


   

Question 1103515: A salesman sold 2 refrigerators for $1200 each. The first sold at 20% profit and the second was sold at 20% loss. Find the salesman's net profit or loss.
Found 2 solutions by Alan3354, ikleyn:
Answer by Alan3354(69443) About Me  (Show Source):
Answer by ikleyn(52803) About Me  (Show Source):
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1.  First refrigerator. 

    Since the salesman sold the first refrigerator for $1200 at 20% profit, he bought this refrigerator at the cost "x" such that

    1.2x = 1200,   i.e.  x = 1200%2F1.2 = 1000 dollars.



2.  Second refrigerator.

    Since the salesman sold the second refrigerator for $1200 at 20% loss, he bought this refrigerator at the cost "y" such that

    0.8y = 1200,   i.e.  y = 1200%2F0.8 = 1500 dollars.



3.  The salesman' spending to bye the two refrigerators was $1000 + $1500 =  $2500.



4.  He sold the two refrigerators for $1200 + $1200 = $2400.



5.  Hence, he lost  $2500 - $2400 = $100,  and his net loss is

    100%2F2500 = 0.04 = 4%.

Answer. The salesman net loss is 4%.

Solved.