Answer:
He will be at a loss of $160
Explanation:
Here, we want to check if he can get the profit or loss
If the purchase price is $1000, 40% of this is $400, and that makes the initial asking price as $1,400
He was unable to sell and decide to reduce his asking price by 40%
That would be:
[tex]\begin{gathered} \text{ 40\% of \$1400 = \$560} \\ \text{New sales price would be:} \\ 1400-560\text{ = \$840} \end{gathered}[/tex]The difference between the final sales price and the cost price will be:
[tex]840-1000\text{ = -\$160}[/tex]What that simply means is that he will be at a loss of $160
