A shopkeeper marks his goods 12% above the cost price and allows 6% discount. What profit percentage does he make?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 5.28%.
Let's assume the cost price of the article = 100
Marked up % = 12%
Marked price = Cost price × (100 + Marked up %)/100
= 100 × (112)/100
= 112
Selling price = Marked price × (100 - discount%)/100
= 112 × (100 - 6)/100
= 105.28
So, Profit % = (SP - CP)/CP × 100
= (105.28 - 100)/100 × 100
= 5.28%