A retailer marks his goods at 40% above the cost price and allows a 15% discount. What is his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
Given:
Marked price = 40% above the cost price
Discount = 15%
Formula:
Selling price = Marked price × (1 − discount / 100)
Let the cost price = 100
Marked price = 100 + 40% of 100 = 140
Selling price = 140 × 0.85 = 119
Profit = 119 − 100 = 19
Profit percentage = (19 / 100) × 100 = 19%