A shopkeeper marks his goods at 40% more than their cost price and allows a discount of 25% on the marked price. His gain or loss percent is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e 5% gain
MP = CP × [1 + markup/100]
SP = MP × [1 – discount/100]
Let the cost price (CP) = Rs. 100
Marked price (MP) = 100 × 1.4 = Rs. 140
At 25% discount:
Selling price (SP) = 140 × 75/100 = Rs. 105
Percentage profit = [(105 – 100)/100] × 100 = 5%