Answer:
total loss is $1000
Step-by-step explanation:
given data
profit = 20 %
loss = 20 %
selling = $20000
To find out
dealer's total profit or loss
solution
first we find profit of 1 car i.e.
profit = selling - purchase price
purchase price of 25 % profit i.e. purchase price *1.25 = selling price
purchase price = 20000/1.25
purchase price = 16000
so profit = 20000 - 16000
profit = $4000
now we calculate loss price
loss = purchase price - selling price
purchase price * 0.8 = selling price
purchase price = 20000/0.8 = 25000
loss = 25000 - 20000
loss = $5000
total purchased price = 16000 + 25000
total purchased price = $41000
total selling price = 20000 + 20000
total selling price = $40000
so total loss = $41000 - $40000
total loss is $1000
