Profit loss

[Imsukhi]

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

[Brent@GMATPrepNow]

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

[Imsukhi]

Brent !
The question is from a coaching material.
Even I found it annoying!!!
Thanks for your inputs.
regards
Imsukhi

[faraz_jeddah]

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%?

[Brent@GMATPrepNow]

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