Question

A trader marks 40% more than the cost price on his goods. He sells 75% of the goods at the marked price and the remaining at an 80% discount. What is his profit or loss?
1. 10% loss
2. 8% loss
3. 12% profit
4. 10% profit

Answer 1

Correct Answer - Option 3 : 12% profit

Given:

Marked Price(MP) = 140%

Discount = 80%

Formula used:

Profit% or Loss% = {(Profit or Loss)/C.P} × 100

Where C.P = Cost Price

Calculation:

Let the dealer has 100 article 

And the price of each article  Rs. x

Total C.P = Rs. 100x

M.P will be Rs. 1.4x

He sold 75% at M.P

Selling Price(S.P)= 75 × 1.40x = Rs. 105x

Rest at 80% Discount

⇒ S.P = (80/100) × 1.4x = Rs. 0.28x

S.P of 25 articles

⇒ 25 × 0.28x = Rs. 7x

Total S.P

⇒ 105x + 7x = 112x

Profit percent = (112x/100x) × 100

⇒ 112%

∴ The dealer had 12% profit.