Calculating Gain or Loss Percentage on Selling Price

To calculate the gain or loss percentage on selling price, we need to know the cost price and selling price of the article. In this case, the cost price of the article is 360 and the selling price is 270.

Calculating the Loss Percentage

As the selling price is less than the cost price, there is a loss in this transaction. To calculate the loss percentage, we use the following formula:

Loss Percentage = (Loss / Cost Price) x 100

Here, Loss = Cost Price - Selling Price
= 360 - 270
= 90

Therefore, Loss Percentage = (90 / 360) x 100
= 25%

Interpretation of the Result

The loss percentage is 25%. This means that the seller has lost 25% of the cost price on selling the article. In other words, the seller has sold the article at 75% of its cost price.

For example, if the cost price of the article was 360, the selling price should have been 360 + 25% of 360 = 450. However, the seller sold it for 270, which is 180 less than the expected selling price.

This loss may have occurred due to various reasons such as lack of demand, competition, changes in market conditions, etc. It is important for the seller to analyze the reasons for the loss and take corrective measures to avoid such losses in the future.