A tradesman marks his goods 25% above the cost price and allows his customers 12% reduction on their bills. What percentage profit does he make?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 10%.
Marked Price (MP) is 25% above Cost Price (CP)
MP = CP + 25% of CP = 1.25 × CP
Customer gets a 12% discount on MP
Selling Price (SP) = 88% of MP = 0.88 × MP
SP = 1.1 × CP
Profit = SP - CP = (1.1 × CP) - CP = 0.1 × CP
Profit % = (Profit ÷ CP) × 100 = (0.1 × CP ÷ CP) × 100 = 10%