Answer:
12% loss
Explanation:
The selling price is the sum of the cost price and the markup. Here, the markup (profit) is expressed as a percentage of the cost price.
Cost price
The relation between selling price and cost price is ...
selling price = cost price + cost price × markup fraction
selling price = cost price × (1 + markup fraction)
Then the original cost price is ...
cost price = (selling price) / (1 + markup fraction)
cost price = #1.35 / (1 +8%) = #1.25
Profit
After the change in selling price, we can find the markup fraction (profit rate) to be ...
1 + markup fraction = (selling price)/(cost price)
markup fraction = (selling price)/(cost price) -1
markup fraction = #1.10/1.25 -1 = 0.88 -1 = -0.12
The trader has a 12% loss when selling the oranges at #1.10.