An item costs Rs 200 and is sold at a 10% loss. If the selling price is reduced by a further 5% (on the current selling price), compute the new selling price.

Introduction:
This problem mixes a loss from cost price and a further percentage reduction from selling price. It reinforces that the base of a percentage cut must be the current value at each step rather than the original cost price unless explicitly stated.

Given Data / Assumptions:

• Cost price = Rs 200.
• Initial loss = 10% on CP.
• Additional reduction = 5% on the selling price obtained after the first reduction.

Concept / Approach:
First compute the selling price after a 10% loss on CP. Then apply a 5% reduction on that selling price. Multiply sequential factors to avoid mixing bases incorrectly.

Step-by-Step Solution:
SP after 10% loss = 200 * (1 - 0.10) = 200 * 0.90 = 180New SP after further 5% off = 180 * (1 - 0.05) = 180 * 0.95 = 171

Verification / Alternative check:
Sequential multipliers give the same result: 200 * 0.90 * 0.95 = 171. Any rounding occurs only if specified; here values are exact.

Why Other Options Are Wrong:

• Rs. 179 and Rs. 175: stem from applying 5% to the cost price or arithmetic errors.
• Rs. 170: double rounding or using 15% straight off CP, which is not the process described.

Common Pitfalls:

• Applying the second 5% reduction to the original cost price instead of the already reduced selling price.
• Adding 10% and 5% as if both were on the same base.

Final Answer:
Rs. 171