Question

A shopkeeper reduces the price of his goods by $50\%$ at the time of sale. Initially the price was fixed to get a profit of $25\%$ on selling price after allowing $10\%$ cash discount. His approx. $\%$ of profit or loss?

• A. $26\%$ loss
• B. $28\%$ profit
• C. $30\%$ loss
• D. $26\%$ profit

Answer 1

Answer: (C)

$30\%$ loss

Let marked price be $100$
$10\%$ discount on marked price means selling price is $90$.
This selling price is fetching $25\%$ profit, so cost price is $72$.
$\Rightarrow x+25$
$\Rightarrow 100x+25x=90\times 100$
$\Rightarrow 125x=90\times 100$
$\Rightarrow x=72$
$50\%$ reduction in marked price means actual selling price is $50$.
So, CP is $72$, SP is $50$.
Loss $=72-50=22$
Percent loss $=\frac{22}{72}\times 100=30.55\%$
So, we will consider it as $30\%$.