Question

Mr. Jones sold two pipes at $1.20 each. Based on the cost, his profit one was 20% and his loss on the other was 20%. On the sale of the pipes, he:

(a) broke even,
(b) lost 4 cents,
(c) gained 4 cents,
(d) lost 10 cents,
(e) gained 10 cents​

Answer 1

given:

two pipes= $1.20

solution:

Selling price of the first pipe = $1.20

Profit = 20%

Let’s try to find the cost price of the first pipe

CP = Selling price - Profit

CP = 1.20 - 20% of CP

CP = 1.20 - 0.20CP

CP + 0.20CP = 1.20

1.20CP = 1.20

CP = 1.20/1.20

CP = $ 1

Selling price of the Second pipe = $1.20

Loss = 20%

Let’s try to find the cost price of the second pipe

CP = Selling price + Loss

CP = 1.20 + 20% of CP

CP = 1.20 + 0.20CP

CP - 0.20CP = 1.20

0.80CP = 1.20

CP = 1.20/0.80

CP = $1.50

Therefore, total cost price of the two pipes

= $1.00 + $1.50

= $2.50

And total selling price of the two pipes

= $1.20 + $1.20

= $2.40

Loss = $2.50 – $2.40 = $0.10

Therefore, Mr. Jones loss 10 cents.

answer= option d.