The selling price of an item inclusive of a 12% profit was ₹616. What would the percentage loss be if the item was sold for ₹462?

Correct option is A

Given:

Selling Price (SP) including 12% profit = ₹616
New Selling Price = ₹462

Formula Used:

Cost Price (CP) = $$\frac{SP }{ (1 + Profit \%)}$$​​

Loss% = $$(\frac{(CP - New \ SP) }{ CP}) × 100$$​​

Solution:

​$$\text{Cost Price (CP)} = \frac{616}{1 + \frac{12}{100}} = \frac{616}{1.12} = ₹550 \\\ \\\text{Loss\%} = \left( \frac{550 - 462}{550} \right) \times 100 = 16\%$$​​