Sumit purchased an item for ₹ 4000 and sold it at

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Sumit purchased an item for ₹ 4000 and sold it at the gain% of 35%. From that amount, he purchased another item and sold it at the loss of 20%. What is his over all gain/loss ?

1. loss of ₹ 340
2. Gain of ₹ 320
3. Loss of ₹ 360
4. Neither gain nor loss

Correct Option: B

CP₁ = ₹ 4000
SP₁ = 4000 x 135/100 = ₹ 5400 CP₂
SP₂ = 5400 x 80/100 = ₹ 4320
CP₁ < SP₂
Hence, profit earned here.
∴ Required gain = ( SP₂ - CP₁)
= 4320 - 4000 = ₹ 320