Question

A shopkeeper marks his goods 40% above the cost price and then allows a discount of 25%. His profit percent is

• A. 5%
• B. 10%
• C. 15%
• D. 12%

Hint:

Mark-up factor times discount factor gives the net selling factor on cost; subtract 1 for profit.

Answer 1

The Correct Option is A

Step 1: Assume a cost price.
Let the cost price be \(100\).
Step 2: Find the marked price.
Marked 40% above cost, so \(MP=100\times1.40=140\).
Step 3: Apply the discount.
Selling price \(=140\times(1-0.25)=140\times0.75=105\).
Step 4: Compute profit percent.
Profit \(=105-100=5\), so profit percent \(=5\%\).
\[\boxed{5\%}\]