Answers

1. Answer:

     12% loss

   Step-by-step explanation:

   The selling price is the sum of the cost price and the markup. Here, the markup (profit) is expressed as a percentage of the cost price.

   Cost price

   The relation between selling price and cost price is …

     selling price = cost price + cost price × markup fraction

     selling price = cost price × (1 + markup fraction)

   Then the original cost price is …

     cost price = (selling price) / (1 + markup fraction)

     cost price = #1.35 / (1 +8%) = #1.25

   Profit

   After the change in selling price, we can find the markup fraction (profit rate) to be …

     1 + markup fraction = (selling price)/(cost price)

     markup fraction = (selling price)/(cost price) -1

     markup fraction = #1.10/1.25 -1 = 0.88 -1 = -0.12

   The trader has a 12% loss when selling the oranges at #1.10.

    

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