Multiple choice

Ravi buys a shirt and marks its price 50% above the cost price. If he allows a discount of 40% at the time of sale, then find his gain or loss percentage on selling the shirt.

  1. 10% gain

  2. 10% loss

  3. 30% loss

  4. 30% gain

  5. 20% loss
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let cost price = 100. Marked price = 150. Discount = 40% of 150 = 60. Selling price = 150 - 60 = 90. Loss = 100 - 90 = 10. Loss percentage = 10%.

AI explanation

Assume the cost price is Rs. 100 to easily calculate the net percentage change. Ravi marks the shirt 50% above the cost price, making the marked price Rs. 150. He then allows a 40% discount on this marked price, meaning the selling price is 60% of 150, which equals Rs. 90. Because the selling price is Rs. 90 against a cost price of Rs. 100, the result is a 10% loss.

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