The selling price of 40 items is equal to the purchase price of 30 items. The profit or loss is:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 25%
The money received for 40 items buys back only 30, so the trader loses the cost price of 10 items on every 40 sold. Profit or loss per cent is always worked out on the cost price.
Assuming the cost price of one item to be Rs. 1: cost price of 40 items \(=\) Rs. 40
Selling price of 40 items \(=\) cost price of 30 items \(=\) Rs. 30
Loss \(=40-30=\) Rs. 10
Loss per cent \(\displaystyle =\frac{10}{40}\times100=25\%\), a loss of 25%
Tip: When the selling price of \(x\) items equals the cost price of \(y\) items, the result is \(\displaystyle\frac{y-x}{x}\times100\%\): a gain if \(y\gt x\), a loss if \(y\lt x\). Here \(\displaystyle\frac{30-40}{40}\times100=-25\%\).