The selling price of an article is 84% of its cost price. If the cost price is increased by 20% and the selling price is increased by 25%, what is the percentage increase/decrease in the loss with respect to the earlier loss?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 
%, decrease
Let the CP be Rs. 100 then SP becomes Rs. 84, Loss = Rs. 16
New CP = 120% of 100 = Rs. 120, New SP = 125% of 84 = Rs. 105, New loss = 120 - 105 = Rs. 15
Decrease % in loss = {(16 - 15)/16} × 100 = %