From profit to a hypothetical loss: An article is sold for ₹ 300 at a profit of 20%. Had it been sold for ₹ 235 instead, what would have been the loss percentage?

Introduction / Context:
With a known profit scenario, first derive the cost price. Then compare an alternative selling price against that cost to determine whether it leads to profit or loss and by what percentage.

Given Data / Assumptions:

• SP1 = ₹ 300 at 20% profit ⇒ SP1 = 1.20 * CP.
• Alternative SP2 = ₹ 235.

Concept / Approach:
CP = SP1 / 1.20. Loss% at SP2 = (CP − SP2)/CP * 100 (since SP2 < CP).

Step-by-Step Solution:
CP = 300 / 1.20 = ₹ 250Loss at SP2 = 250 − 235 = ₹ 15Loss% = 15 / 250 * 100 = 6%

Verification / Alternative check:
At SP1, profit = ₹ 50. At SP2, margin is negative by ₹ 15, which is 6% of 250—consistent.

Why Other Options Are Wrong:

• 3% / 5% / 16%: do not match 15/250 * 100.

Common Pitfalls:

• Basing the percentage on SP instead of CP.

Final Answer:
6%