Question

An article is marked 20% above the cost price and sold at a discount of 20%. What is the net result of this sale?

• A. 10% gain
• B. No profit or loss
• C. 10% loss
• D. 4% loss

Answer 1

Answer:

D. 4% loss

1. Assume a Cost Price:

• Let's assume the cost price of the article is Rs. 100.

2. Calculate the Marked Price:

• Marked price = Cost price + 20% of cost price

• Marked price = 100 + (20/100)*100 = Rs. 120

3. Calculate the Selling Price:

• Selling price = Marked price - 20% of marked price

• Selling price = 120 - (20/100)*120 = Rs. 96

4. Calculate the Loss:

• Loss = Cost price - Selling price

• Loss = 100 - 96 = Rs. 4

5. Calculate the Loss Percentage:

• Loss percentage = (Loss / Cost price) * 100

• Loss percentage = (4 / 100) * 100 = 4%

Therefore, the net result of this sale is a loss of 4%.