Multiple choice

Directions : Select the correct alternative from the given choices. A retailer bought different items among his supplies at different prices and then fixed the selling price of each item at 40% more than what the respective item had cost him. In order to clear his stocks on account of year-end sales, he reduced the selling price of each item by 30%. What would be his actual profit or loss percentage due to this reduction?

  1. 2% loss

  2. 8% loss

  3. 10%profit

  4. 12%loss
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. Marked Price = 140. Selling Price = 140 * 0.7 = 98. Profit/Loss = 98 - 100 = -2. So, a 2% loss.

AI explanation

Let the initial cost price of an item be 100. The shopkeeper marks the selling price at 40% more, making it 140. During the sale, a 30% reduction applies to the 140, which calculates to 42. The final selling price becomes 140 minus 42, resulting in 98. Comparing this final selling price of 98 to the original cost price of 100 shows an actual loss of 2%.

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