A merchant marked the price of his article 20% above its cost price. He offers two successive discounts of 10% and 5%. What is his overall profit or loss percentage?
Show answer & explanation
Correct answer: B
Explanation
Marked Price = 20% higher
Discounts = 10% and 5%
Assume CP = 100
MP = 120
Total Discount = 10 + 5 − (10×5/100) = 14.5%
SP = 120 × (1 − 14.5/100) = 102.6
Profit = 102.6 − 100 = 2.6
Profit % = 2.6%