A seller marks his goods 32% above their cost price but allows a 16% discount for cash payment. His percentage of profit when sold in cash is:
Show answer & explanation
Correct answer: C
Explanation
Given:
Marked price = 32% above the cost price
Discount = 16%
Formula:
Selling price = Marked price × (1 − discount)
Let's say the cost price = 100
Marked price = 100 × 1.32 = 132
Now, a 16% discount
Selling price = 132 × 0.84 = 110.88
Profit = 110.88 − 100 = 10.88
Profit percentage = 10.88%