A trader marks his goods at 40% above the cost price. He sells 70% of the goods at the marked price and the rest, he sells by allowing a 40% discount on the marked price. His percentage profit is:
Show answer & explanation
Correct answer: A
Explanation
Correct Answer is option 1 i.e. 23.2
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Concept |
Understanding |
Application |
Fair calculation |
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SP = MP - discount |
Let the cost price of one article is Rs. 100 MP = 100 × 1.4 = Rs. 140 And number of articles = x |
Since 70% of the goods are sold at marked price: CP of 70% goods = 0.7x × 140 = 98x Since 30% of the goods are sold at 40% discount on MP: CP of 30% goods = 0.3x × 140 × 0.6 = 25.2x Hence, CP of 100% goods = 98x + 25.2x = 123.2x SP of 100% goods = 100x Hence, Profit percentage = [(123.2x – 100x)/100x] × 100 = 23.2% |
0.3x × 140 × 0.6 = 42x × 0.6 = 25.2x |