A. $84 loss

B. $42 loss

C. $0 loss/gain

D. $42 gain

E. $84 gain

Answer: A

Explanation:

Here easily students will fall for the trap of Neither Loss Nor profit.

Remember that, it is given that

A man sold two cars at $1000 each.

So, its selling Price = 1000 dollars each

Let “x” be the cost price of an item which made a profit of 20 percent.

Then,

x + 20% of x = 1000

1.2 x = 1000

x = 833.33

Let “y” be the cost price of an item which made a loss of 20 percent.

Then,

y – 20% of y = 1000

0.8 y = 1000

y = 1250

So, the total cost price of both the items = x + y = 833.33 + 1250 = 2083.33

Overall Loss = C.P – S.P = 2083.33 – 2000 = 83.33 ~ 84

Hence the answer is A.