Ram sells chocolates at a profit of 20% for Re 60. What will be the percentage…

2025

 Ram sells chocolates at a profit of 20% for Re 60. What will be the percentage loss or gain if he reduces the price to Re 55 due to less demand.

  1. A.

    9%

  2. B.

    4%

  3. C.

    10%

  4. D.

    20%

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Show answer & explanation

Correct answer: C

The original selling price is Rs. 60 at a profit of 20%. To find the cost price, divide the selling price by (1 + profit percentage): 60 / 1.2 = Rs. 50. When the price is reduced to Rs. 55, the new profit is 55 - 50 = Rs. 5. The profit percentage is (5 / 50) × 100 = 10%. Therefore, the profit is 10%.

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