If a product is bought for $150 and sold for $120, what is the percentage loss i

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Question: If a product is bought for $150 and sold for $120, what is the percentage loss incurred?

Options:

Correct Answer: 25%

Solution:

Loss = Cost Price - Selling Price = $150 - $120 = $30. Percentage loss = (Loss/Cost Price) * 100 = ($30/$150) * 100 = 20%.

If a product is bought for $150 and sold for $120, what is the percentage loss incurred?

If a product is bought for $150 and sold for $120, what is the percentage loss incurred?

Step 1: Identify the cost price of the product, which is $150.
Step 2: Identify the selling price of the product, which is $120.
Step 3: Calculate the loss by subtracting the selling price from the cost price: $150 - $120.
Step 4: The loss is $30.
Step 5: To find the percentage loss, divide the loss by the cost price: $30 / $150.
Step 6: Calculate the result of the division: $30 / $150 = 0.2.
Step 7: To convert this to a percentage, multiply by 100: 0.2 * 100.
Step 8: The percentage loss is 20%.

Cost Price and Selling Price – Understanding the difference between the cost price (the price at which a product is bought) and the selling price (the price at which a product is sold) is crucial for calculating profit or loss.
Loss Calculation – Calculating loss involves subtracting the selling price from the cost price to determine how much was lost on the transaction.
Percentage Calculation – To express the loss as a percentage, the formula involves dividing the loss by the cost price and multiplying by 100.