Question

If the cost price of 10 shirts is equal to the selling price of 8

shirts, then which of the following is true for the transaction?
(a) Profit of 25%
(b) Loss of 25%
(c) Profit of 20%
(d) Loss of 20%

Answer 1

Profit 25%

Explanation:

The cost price of 10 shirts = 10

= 10

And the cost price of 8 shirts = 8

The profit earned in selling 8 shirts is,

= Selling price of shirts - Cost price of shirts

= 10 - 8

= 2

The profit percentage of 8 shirts is,

= (Profit earned on 8 shirts/ CP of 8 shirts)

2x/8x times 100

100/4

= 25%

Answer 2

The transaction results in a loss of 20%.

To determine the profit or loss in this transaction, you need to calculate the difference between the cost price and the selling price and express it as a percentage of the cost price. If the cost price of 10 shirts is equal to the selling price of 8 shirts, then the difference between the two is the cost price of 10 shirts - the selling price of 8 shirts = 2 shirts. This means that the cost price of 2 shirts is equal to the difference between the cost price and the selling price.

To express this difference as a percentage of the cost price, you need to divide the difference (2 shirts) by the cost price (10 shirts) and multiply the result by 100%. This gives you 2/10 * 100% = 20%. Since the difference is a negative number (the selling price is less than the cost price), this represents a loss of 20%. Therefore, the correct answer is (d) Loss of 20%.