An item costing Rs. 600 is being sold at 20% loss. If the price is further reduced by 12.5%, the selling price will be:

Options

A. Rs. 400
B. Rs. 380
C. Rs. 420
D. Rs. 525

Answer

To solve the problem step by step, we will follow the calculations as outlined in the video transcript.

### Step 1: Calculate the Selling Price at 20% Loss
1. **Identify the Cost Price (CP)**: The cost price of the item is Rs. 600.
2. **Identify the Loss Percentage**: The loss percentage is 20%.
3. **Calculate the Selling Price (SP)** using the formula:
\[ SP = \left( \frac{100 - \text{Loss Percentage}}{100} \right) \times CP \]
Substituting the values:
\[ SP = \left( \frac{100 - 20}{100} \right) \times 600 = \left( \frac{80}{100} \right) \times 600 \]
\[ SP = 0.8 \times 600 = 480 \]
So, the selling price at 20% loss is Rs. 480.

### Step 2: Calculate the New Selling Price after Further Reduction
1. **Identify the Further Reduction Percentage**: The price is further reduced by 12.5%.
2. **Calculate the Amount of Reduction**:
\[ \text{Reduction Amount} = \left( \frac{\text{Reduction Percentage}}{100} \right) \times \text{Current Selling Price} \]
Substituting the values:
\[ \text{Reduction Amount} = \left( \frac{12.5}{100} \right) \times 480 = 0.125 \times 480 \]
\[ \text{Reduction Amount} = 60 \]
3. **Calculate the New Selling Price**:
\[ \text{New Selling Price} = \text{Current Selling Price} - \text{Reduction Amount} \]
Substituting the values:
\[ \text{New Selling Price} = 480 - 60 = 420 \]

### Final Answer
The new selling price after the further reduction is Rs. 420.

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