Question

Jack sold a black jacket for $150 and took 25% profit. At the same time Jack sold a red jacket for $150 and took a 25% lost.
A. He lost $20
B. He lost $25
C. He lost $30
D. He gained $20
E. He gained $30

Answer 1

Pb = Procurement price of a black jacket

Pr = Procurement price of a red jacket


25% = 25 / 100 = 0.25


Jack sold a black jacket for $150 and took 25% profit:

$ 150 = Pb + 25% Pb = Pb + 0.25 Pb = 1.25 Pb


$ 150 = 1.25 Pb

Pb = $ 150 / 1.25 = $ 120


Jack sold a red jacket for $150 and took a 25% lost:

$ 150 = Pr - 25% Pr = Pr - 0.25 = 0.75 Pr


$ 150 = 0.75 Pr

Pr = $ 150 / 0.75 = $ 200


Procurement price of a black jacket and procurement price of a red jacket:

Pb + Pr = $120 + $ 200 = $ 320


His profit:

$ 150 + $ 150 = $ 300


$ 300 - $ 320 = - $ 20


He lost $ 20

Answer A