Question

a man purchased a used car for $1000. he decided to sell the car for 20% above his purchase price. he could not sell the car so he reduced his asking price by 20%. if he sells the car at the reduced price, will he have a profit or a loss or will he break even? select the correct choice below and fill in any answer box to complete your answer. a. the man will break even. b. the man will have a loss of $40. c. the man will have a profit of $

Explanation:

Step1: Calculate initial asking price

Initial asking price = Purchase price × (1 + 20%)
$\$1000 \times 1.20 = \$1200$

Step2: Calculate reduced selling price

Reduced price = Initial asking price × (1 - 20%)
$\$1200 \times 0.80 = \$960$

Step3: Calculate profit/loss

Profit/Loss = Reduced price - Purchase price
$\$960 - \$1000 = -\$40$

Answer:

B. The man will have a loss of $\$40$