A shopkeeper buys an item for ₹1380. He marks it 30% above cost price and gives a discount of 10%. What is the profit or loss percentage?
Explanation
First apply discount to marked price to obtain selling price; then compare selling price with cost price. For this question, identify every monetary base before applying a percentage. The question-specific working supplied in the record is: MP = CP × (100 + markup%) /100 = 1380×130/100 = 1794. SP = MP × (100 − discount%)/100 = 1614. Profit% = (234/1380)×100 = 16.96%. Profit and loss questions become unreliable when a percentage is applied to the wrong base. Profit or loss percent uses cost price, while discount percent uses marked price. If several changes occur, convert each change into a multiplier and apply them in order. The distractors 21.96%, 26.96%, 11.96% can result from interchanging cost price and selling price, treating discount as loss, adding successive rates, ignoring quantity, or rounding before the final step. A dependable check is to assume cost price 100 whenever only percentages are involved, reconstruct the selling value, and compare the resulting ratio with the selected option. Also verify direction: profit requires selling price above cost price, whereas loss requires it below cost price. In marked-price problems, a discount can coexist with profit because marked price and cost price are different bases. This method preserves the numerical relationships in the stem and develops formula selection, percentage-base recognition and option elimination for SSC, Railway, Banking and other competitive aptitude examinations.