By selling an article for Rs. 880, a shopkeeper gains 10%. Due to the reduction in sales, he allows a discount of 25% on the previous selling price. His gain/loss percentage during the sale is
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. loss 17.5%.
The selling price of the article = Rs. 880
Profit = 10%
Cost Price = Selling Price × 100/(100 + profit %)
Cost price = 880 × 100/110 = Rs 800
After 25% discount on selling price, the new selling price = 880 × (100 - 25)/100
= 880 × 3/4
= Rs 660
So, loss = CP - SP
= 800 - 660 = Rs 140
Loss percentage = Loss/Cost price × 100
= 140/800 × 100 = 17.5% loss