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Profit loss

by Imsukhi » Fri Jul 12, 2013 6:38 am
10% loss on selling price is what percent loss on the cost price?
a) 9 1/11 %
b) 9 2/11 %
c) 10%
d) 11 %

pls explain
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by Brent@GMATPrepNow » Fri Jul 12, 2013 6:55 am
Imsukhi wrote:10% loss on selling price is what percent loss on the cost price?
a) 9 1/11 %
b) 9 2/11 %
c) 10%
d) 11 %

pls explain
I'm having a hard time determining what this question is asking.
What's the source?

Cheers,
Brent
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by Imsukhi » Sat Jul 13, 2013 8:25 am
Brent !
The question is from a coaching material.
Even I found it annoying!!!
Thanks for your inputs.
regards
Imsukhi
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by faraz_jeddah » Sat Jul 13, 2013 12:01 pm
Let
Cost Price (C) = $100
Selling price (S) = $120

Profit = $20 which is 20%

10% loss on selling price = .9 * 120 = $108

Now profit is $8 which is 8%

so the decrease is from $20 -> $8

From 20% to 8%

Decrease of 12%?
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by Brent@GMATPrepNow » Sat Jul 13, 2013 12:29 pm
faraz_jeddah wrote:Let
Cost Price (C) = $100
Selling price (S) = $120

Profit = $20 which is 20%

10% loss on selling price = .9 * 120 = $108

Now profit is $8 which is 8%

so the decrease is from $20 -> $8

From 20% to 8%

Decrease of 12%?
Good idea, faraz. But if we plug different numbers into your solution then we get different results. For example . . .

Cost Price (C) = $100
Selling price (S) = $150

Profit = $50 which is 50%

10% loss on selling price = .9 * 150 = $135

Now profit is $35 which is 35%

so the decrease is from $50 -> $35

From 50% to 35%

Decrease of 15% [or a 30% decrease if we consider a decrease from $50 to $35]

--------------------------
Good idea though.

I'd say that this question is not worded well enough to ever be an official GMAT question.
So, let's ignore it and move on to other questions :-)

Cheers,
Brent
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