Final answer:
Esme originally made a 40% profit, which is Rs 200, on each jacket before the selling price was reduced by the historical profit amount. After the reduction, the profit became 0% and Rs 0 profit per item.
Step-by-step explanation:
The question asks to calculate the percentage of profit Esme makes on a jacket that is bought for Rs 500 and priced at Rs 700, considering a reduction in selling price by the amount of historical profit. To find the profit per item, we subtract the cost price from the selling price. The cost price is Rs 500 and the original selling price is Rs 700, so the profit is Rs 700 - Rs 500 = Rs 200. The historical profit in this case is the original profit on the deal, which is Rs 200.The selling price is then reduced by this historical profit amount, becoming Rs 700 - Rs 200 = Rs 500, which is the same as the cost price. This means that after reducing the selling price by the historical profit, there is no profit made on the sale of the jacket. However, the original profit, before the price reduction, was Rs 200 on each jacket. To find the percentage profit, we divide the profit by the cost price and multiply by 100: (Rs 200 / Rs 500) × 100 = 40% profit. Hence, before the reduction of selling price, Esme made a 40% profit on each jacket.Conclusion: The correct option considering the original profit would be none of the given choices as the profit percentage is 40% with a Rs 200 profit per item, but this would change to 0% and Rs 0 profit per item after the selling price reduction.