Question

A dealer marks an item $40\%$ above the cost price and offers a discount of $25\%$ on the marked price. What is his profit percentage?

• A. $5\%$
• B. $7\%$
• C. $9\%$
• D. $11\%$

Answer 1

The correct option is A $5\%$

Let the C.P. of the item be Rs. $100$
Then, M.P. $=$ Rs. $140$, Discount $=25\%$
$\therefore$ S.P. $=$ Rs. $140-25\%$ of Rs. $140$
$=$ Rs. $140-\frac{25}{100}\times$ Rs. $140$

$=140-35=$ Rs. $105$
$\therefore$ Profit $=$ Rs. $105-$ Rs. $100=$ Rs. $5$
Profit $\%$ $=\frac{5}{100}\times 100=5\%$.