Difficulty: Easy
Correct Answer: 35%
Explanation:
Introduction / Context:
This problem gives a reduced selling price that produces a known loss. Use it to connect the unknown cost price (CP) with the original price P, then compute the gain when selling at P instead of (2/3)P.
Given Data / Assumptions:
Concept / Approach:
From (2/3)P = 0.90CP, express P in terms of CP and then compute the percentage gain at P relative to CP.
Step-by-Step Solution:
(2/3)P = 0.90CP ⇒ P = (0.90 × 3/2)CP = 1.35CP.Gain fraction at P = (1.35CP − CP)/CP = 0.35.Gain% = 0.35 × 100 = 35%.
Verification / Alternative check:
Assume CP = 100. Then P = 135; at (2/3)P = 90 there is a 10% loss (since CP 100); at P = 135, gain = 35% (matches).
Why Other Options Are Wrong:
33 1/3% and 40% are near but not exact; 20% and 25% are inconsistent with the derived P-to-CP relation.
Common Pitfalls:
Adding or subtracting percents on prices without anchoring to CP; always convert to CP to compute true gain or loss.
Final Answer:
35%
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