Question

A shop sells kebabs for a 20% loss. The kebabs sell for £4.88 each. The shop wants to reduce its loss on kebabs to 10%. How much should the shop charge per kebab?

A) £5.42
B) £5.76
C) £5.40
D) £6.10

Answer 1

To reduce the loss on kebabs to 10%, the shop should charge approximately £6.10 per kebab.

Step-by-step explanation:

To find the new price the shop should charge per kebab in order to reduce its loss on kebabs to 10%, we can use the formula:

New Price = Original Price / (1 - Loss Percentage)

Given that the current price is £4.88 and the current loss is 20%, we can calculate:

New Price = £4.88 / (1 - 0.20) = £4.88 / 0.80 ≈ £6.10

Therefore, the shop should charge approximately £6.10 per kebab to reduce its loss to 10%.