A garment shop sells a shirt for ₹A, including a loss of 5%. During an end-of-season sale, they mark up the same shirt to ₹1.2A. At the sale, they provide a flat discount of 10% on the marked price. What will be the percentage profit or loss for the garment shop on that shirt during the sale?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 2.6% Profit.
Let CP = x
Given the first selling price, A has 5% loss
So,
A = 0.95x
Now marked price in sale = 1.2A = 1.2 × 0.95x = 1.14x
After 10% discount:
SP = 0.9 × 1.14x = 1.026x
Profit = 1.026x − x = 0.026x
Profit % = × 100 = 2.6% profit