A retailer sells a product for ₹A, incurring a loss of 10%. During a sale, he marks up the product by 17.5% on the cost price and provides a flat discount of 20% on the marked price. What is the percentage profit or loss for the retailer during the sale?
Show answer & explanation
Correct answer: A
Explanation
Given:
Selling price = Rs. 8
Loss = 10%
By formula:
SP = CP × (1 − Loss/100)
8 = CP × 0.90
CP = 8 ÷ 0.90
CP = 80/9
Marked price = CP × (1 + 17.5/100)
= (80/9) × 1.175
= (80/9) × (47/40)
= 94/9
Selling price during sale = MP × (1 − 20/100)
= (94/9) × 0.8
= (94/9) × (4/5) = 376/45
Profit/Loss = (SP − CP) / CP × 100
= (376/45) − 80/9) ÷ (80/9)) × 100
= ((376 − 400)/45 ÷ (80/9)) × 100
= (−24/45 × 9/80) × 100
= −6%