The selling price of 40 items is equal to the purchase price of 35 items. What is the percentage profit or loss?

Correct option is A

Given:
Selling price of 40 items = Cost price of 35 items
Formula Used:
Profit% = [(Selling Price - Cost Price) / Cost Price] × 100
Solution:
Let the cost price of 1 item be Rs. 1.
Therefore, Cost price of 35 items = Rs. 35, and Selling price of 40 items = Rs. 35.
So, Selling price of 1 item = Rs. 35 / 40 = Rs. 7/8.
Cost price of 1 item = Rs. 1 and Selling price of 1 item = Rs. 7/8.
Thus, there is a loss.
Loss = Cost Price - Selling Price = 1 - (7/8) = 1/8.
Loss percentage = (Loss / Cost Price) × 100 = (1/8) × 100 = 12.5%.
Therefore, there is a loss of 12.5%.

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