Problem: Mr. Jones sold two pipes at $1.20 each. Based on the cost his profit on one was 20% and his loss on the other was 20%. On the sale of the pipes, he
Answer Choices:
A. broke even
B. lost 4 cents
C. gained 4 cents
D. lost 10 cents
E. gained 10 cents
Solution:
S1=C1+51C1 and S2=C2−51C2.∴C1=65S1=1.00 and C2=45S2=1.50.∴S1+S2=2.40 and C1+C2=2.50;∴ (D) is the correct choice.