Join 60,000+ competitive exam aspirants
or with email
Your Cart
SubtotalтВ╣0
TotalтВ╣0
Examoogle тАв User тАв info@examoogle.com тАв EE-2024-8821
Chapter 1 of 12 тАв Page 1 of 248ЁЯФТ Protected PDF тАв Watermarked
Join 60,000+ competitive exam aspirants
A merchant sells an item for Rs. 960, making a profit of 20%. If he sold it for Rs. 850, what would be his percentage profit or loss?
6.25% ┬аprofit
6.25% ┬аloss
7.5% ┬аprofit
7.5% ┬аloss
6.25% ┬аprofit
Use the ratio of selling prices. Since SP1 (960) corresponds to 120% of Cost Price, find the equivalent percentage for SP2 (850) as 960120тАЛ├Ч850=106.25%.
Selling Price (SP1) = Rs. 960, Profit % = 20%, Selling Price (SP2) = Rs. 850.
CP=100+Profit%SP├Ч100тАЛ
Use the ratio of selling prices. Since SP1 (960) corresponds to 120% of Cost Price, find the equivalent percentage for SP2 (850) as 960120тАЛ├Ч850=106.25%.
Many students calculate 20% of 850 instead of finding the Cost Price first, or they confuse profit percentage with profit amount.
Calculate Cost Price (CP)
Using the formula for CP when selling price and profit percentage are known: CP=1.20960тАЛ.
CP=800
Calculate the profit on the new selling price
The new selling price is Rs. 850. The profit amount is 850тИТ800=50.
Profit=50
Calculate Profit Percentage
Calculate the profit percentage relative to the cost price: Profit%=80050тАЛ├Ч100.
Profit%=6.25%
A is correct because the cost price is Rs. 800 and selling at Rs. 850 results in a 6.25% profit.
This concept of base normalization is identical to calculating simple interest rates or percentage change in data interpretation problems.
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download тАв 100K+ Aspirants