A used car dealer sold one car at a profit of 25 percent of the dealers purchase price for that car and sold another...

A used car dealer sold one car at a profit of 25 percent of the dealer's purchase price for that car and sold another car at a loss of 20 percent of the dealer's purchase price for that car. If the dealer sold each car for $20,000 , what was the dealers total profit or loss, in dollars, for the two transactions combined?

A. 1000 profit
B. 2000 profit
C. 1000 loss
D. 2000 loss
E. 3334 loss

Answer: C

Source: GMAT Prep