A dealer marks his goods at 20% above the cost price and allows a discount of 15% on the marked price. What is his gain or loss percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 2% gain.
Given that
A dealer marks his goods at 20% above the cost price
Let the cost price be 100 units
The marked price = 100 + 20 = 120 units
Selling price = Marked price × (100 - discount%)/100
Profit % = (Selling price- Cost price)/Cost price× 100
He allows a discount of 15% on the marked price
The selling price = 120 × (100 - 15) /100 = 120 × 85/100 = 102 units
So, the profit = Selling price - Cost price = 102 - 100 = 2 units
Hence, the profit percentage = 2/100 × 100 = 2%