Question 61

The selling price of an article is 84% of its cost price. If the cost price is increased by 20% and the selling price is increased by 25%, what is the percentage increase/decrease in the loss with respect to the earlier loss?

Solution

Let cost price, C = Rs. 100, thus selling price, S = Rs. 84

=> Original loss = Rs. 16

New cost price after 20% increase = $$C'=100\times\frac{120}{100}=Rs.$$ $$120$$

Similarly, new selling price = $$S'=84\times\frac{125}{100}=Rs.$$ $$105$$

=> New loss = Rs. 15

$$\therefore$$ Decrease in loss = $$\frac{(16-15)}{16}\times100$$

= $$\frac{25}{4}=6\frac{1}{4}\%$$

=> Ans - (A)

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