An item is sold at a 16% profit. If the selling price had been ₹105 less, the seller would have incurred a 12% loss. If the same item is sold for ₹350, what is the profit or loss percentage?
Show answer & explanation
Correct answer: B
Explanation
Given:
First Selling Price = 16% Profit
Second Selling Price = 12% Loss (₹105 less)
According to the formula:
SP₁ = 1.16 CP
SP₂ = 0.88 CP
SP₁ − SP₂ = 105
1.16 CP − 0.88 CP = 105
0.28 CP = 105
CP = 105 / 0.28 = 375
Now, upon selling at ₹350:
Loss = 375 − 350 = 25
Loss % = (25 / 375) × 100 = 6.67%