Option 1 : Loss, 2.5%

Concept use:

% loss = {(Cost price – Selling price)/Cost price} × 100

Calculations:

Total cost price of the items = 1200 + 1200 = 2400

He gains a profit of 15 % on one item

⇒ Selling price of first item = 1200 × (115/100) = 1380

He got a loss of 20% on the second item

⇒ Selling price of the second item = 1200 × (80/100) = 960

∴ Total selling price = 1380 + 960 = 2340

⇒ Overall % loss = {(Cost price – Selling price)/Cost price} × 100

⇒ % loss = {(2400 – 2340)/2400} × 100

⇒ % loss = 2.5