Given: Marked price = ₹650, and selling at this price gives 25% profit.
When profit is 25%, the selling price is 1.25 times the cost price.
650=CP×1.25
CP=1.25650
CP=520
The cost price is ₹520.
During the clearance sale, a 20% discount is given on the marked price.
Discount amount =10020×650
Discount amount =130
Selling price during sale =650−130
Selling price during sale =520
Comparing the cost price and selling price during sale:
Cost Price = ₹520
Selling Price = ₹520
Since the cost price equals the selling price, there is no profit and no loss.
The answer is option 3: No profit, no loss.