The marked price of the cupboard is Rs. 15,750, which is 50% above its cost price. It is sold at a discount of 40%. What is the profit/loss percentage?

Correct option is B

Given:

Marked Price (MP) = Rs. 15,750

Markup Percentage = 50% (MP is 50% above Cost Price)

Discount Percentage = 40%

Formula Used:

MP = $$CP \times (1 + \frac{\text{Markup \%}}{100})$$​​

SP = $$MP \times (1 - \frac{\text{Discount \%}}{100})$$​​

Loss % = $$\frac{\text{Loss}}{CP}\times 100$$​​

Solution:

Since the Marked Price is 50% above the Cost Price:

15,750 = $$CP \times (1 + \frac{50}{100})$$​​

15,750 = CP × 1.5

CP = $$\frac{15,750}{1.5}$$​ = 10,500

Cost Price = Rs. 10,500

The item is sold at a 40% discount on the Marked Price:

SP = $$15,750 \times (1 - \frac{40}{100})$$​​

SP = 15,750 × 0.60

Selling Price = Rs. 9,450

Loss = 10,500 - 9,450 = 1,050

Loss % = $$(\frac{1,050}{10,500}) \times 100$$ = 10%