Multiple choice

If the selling price of an article is reduced by 60%, then there is a loss of 10% on cost price. The initial profit percent was -

  1. 70%

  2. 80%

  3. 125%

  4. 100%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Initial SP = 100 + P (where P is initial profit %). After 60% reduction: New SP = 0.4 × (100 + P). This is at 10% loss, so 0.4(100 + P) = 90. Solving: 40 + 0.4P = 90, so 0.4P = 50, P = 125. Initial profit was 125%.

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