An item costs Rs 200 and is sold at a 10% loss. If the price is further reduced by 5 percentage points, what is the new selling price?

Introduction:
Loss percentages are on cost price (CP). If the loss increases from 10% to 15%, compute the new SP as (1 − 0.15)*CP.

Given Data / Assumptions:

• CP = Rs 200
• Initial loss = 10% ⇒ SP1 = 0.90 * 200 = 180
• Further reduction by 5 percentage points ⇒ total loss = 15%

Concept / Approach:
New SP = (1 − 0.15) * 200 = 0.85 * 200.

Step-by-Step Solution:
SP2 = 0.85 * 200 = Rs 170

Verification / Alternative check:
Difference SP1 − SP2 = 10 rupees; consistent with an additional 5% of CP = 10.

Why Other Options Are Wrong:
171, 180, 181: Do not equal 85% of 200.

Common Pitfalls:
Applying the extra 5% to the previous SP instead of to CP; confusing percentage points with compounding on SP.

Final Answer:
Rs. 170