A trader marks up an article by 25% on its cost price. He then offers two successive discounts: 10% followed by 5% on the marked price. If the cost price (CP) is ₹480, what is the final profit or loss percent?
Show answer & explanation
Correct answer: A
Explanation
Given:
Cost Price (CP) = ₹480
Marked Price = 25% above CP
Discount = 10% and 5%
Formula:
Marked Price = CP × (1 + 25/100)
Selling Price = MP × (1 − 10/100) × (1 − 5/100)
MP = 480 × 1.25 = 600
SP = 600 × 0.9 × 0.95
SP = 600 × 0.855 = 513
Profit = 513 − 480 = 33
Profit % = (33 / 480) × 100 = 6.875%