A shopkeeper increases the cost price of an item by 50% and offers a discount of 40% on this marked price. What is his loss percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 10%.
GIven that
A shopkeeper increases the cost price of an item by 50%
The discount on marked price = 40%
Let the cost price of an item be 100 units
The marked price of the item = 100 + 50 = 150 units
M.P./ C.P. = (100 + P)/(100 - D)
Where, P is profit and D is discount
150/100 = (100 + P)/(100 - 40) = (100 +P)/60
100 + P = 90
P = 100 - 90 = 10%