(d) What is the meaning of \( 75 \% \) loss? By selling an exhaust fan for Rs 1,470 , Mr. Ekaraj gains \( \frac{1}{6} \) of its cost price.
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When we talk about a \( 75\% \) loss, it means that the selling price is only \( 25\% \) of the cost price. For example, if an item costs Rs 100, a \( 75\% \) loss means it would sell for Rs 25. It's a significant loss that can occur in various businesses, indicating that the selling price is far below the investment amount. In the case of Mr. Ekaraj, selling the exhaust fan for Rs \( 1,470 \) while making a gain of \( \frac{1}{6} \) of its cost price suggests the selling price (SP) is higher than the cost price (CP). To find the cost price, you can set up an equation where \( SP = CP + \frac{1}{6}CP \), then solve for CP, leading to insights into his profit margins. It’s a neat way to understand profit in practical scenarios!