A shopkeeper sells 10 identical watches for ₹10,500, which is the cost price of 8 watches. Find his loss percentage.
- AOption (a)
10%
- BOption (b)
30%
- COption (c)
40%
- DOption (d)
20%
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Correct answer
20%
Why this answer is correct
Shortcut Trick
Given: Selling Price (SP) of 10 watches = Cost Price (CP) of 8 watches.
Using the ratio method: 10 × SP = 8 × CP.
Ratio of SP/CP = 8/10 = 4/5.
Loss = CP − SP = 5 − 4 = 1 unit.
Loss% = (Loss ÷ CP) × 100 = (1 ÷ 5) × 100 = 20%.
∴ The correct answer is 20%.
Alternate Method
Given: Total SP of 10 watches = ₹10,500. CP of 8 watches = ₹10,500.
Formulas: CP of 1 watch = Total CP ÷ Quantity | SP of 1 watch = Total SP ÷ Quantity | Loss% = ((CP − SP) ÷ CP) × 100.
⇒ Cost Price (CP) of 8 watches = ₹10,500.
⇒ CP of 1 watch = 10,500 ÷ 8 = ₹1312.5.
⇒ Selling Price (SP) of 10 watches = ₹10,500.
⇒ SP of 1 watch = 10,500 ÷ 10 = ₹1050.
⇒ Loss per watch = 1312.5 − 1050 = ₹262.5.
⇒ Loss% = (262.5 ÷ 1312.5) × 100 = 20%.
∴ The correct answer is 20%.
Additional Information
Loss and CP Relationship
When the SP of 'n' articles equals the CP of 'm' articles, if n > m, there is always a loss. Loss% = ((n − m) ÷ n) × 100.
Percentage Calculation
Loss and Profit percentages are always calculated on the Cost Price (CP) unless stated otherwise in the problem.