A person sells an article at the loss of 25 percent. Cost price and selling price are increased by 40 percent and 'y' percent respectively. If the new loss percentage is 15 percent, then what is the value of 'y'?
- AOption (a)
54.57
- BOption (b)
58.67
- COption (c)
72.48
- DOption (d)
64.75
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Correct answer
58.67
Why this answer is correct
Shortcut Trick
Let the initial Cost Price be 100 units, then the initial Selling Price is 75 units (25% loss).
New Cost Price = 100 + 40% = 140 units.
New Selling Price at 15% loss = 140 × 0.85 = 119 units.
Required percentage increase in Selling Price (y) = [(119 − 75) ÷ 75] × 100.
y = (44 ÷ 75) × 100 = 176 ÷ 3 = 58.67.
∴ The correct answer is 58.67.
Alternate Method
Given:
Initial Loss = 25%
Increase in Cost Price = 40%
New Loss = 15%
Formula Used:
Selling Price (SP) = Cost Price (CP) × (100 − Loss%)/100
Percentage Increase = [(Final Value − Initial Value) ÷ Initial Value] × 100
Calculations:
⇒ Assume initial Cost Price = 100
⇒ Initial Selling Price = 100 − 25% of 100 = 75
⇒ New Cost Price = 100 + 40% of 100 = 140
⇒ New Selling Price = 140 × (100 − 15)/100
⇒ New Selling Price = 140 × 85/100 = 119
⇒ Increase in Selling Price = 119 − 75 = 44
⇒ Percentage increase (y) = (44 ÷ 75) × 100
⇒ y = (44 × 4) ÷ 3 = 176 ÷ 3
⇒ y = 58.666... ≈ 58.67
∴ The correct answer is 58.67.
Additional Information
Profit and Loss Relationship
Selling Price is calculated as CP × (100 + P%)/100 for profit and CP × (100 − L%)/100 for loss.
Percentage Change
The percentage change between two values is always calculated using the original value as the base: [(New − Old) ÷ Old] × 100.
Effective Change
When both CP and SP change, the new profit/loss percentage depends on the final ratio of the updated SP and CP values.