A tradesman marks his goods at 40% above the cost price and then allows customers a discount of 15%. What is the profit percentage for the tradesman?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 19%.
Marked Price (MP) is 40% above Cost Price (CP) = 1.40 × CP
Discount = 15% on MP
Selling Price (SP) = 85% of MP = 0.85 × MP
SP = 0.85 × 1.40 × CP = 1.19 × CP
Profit = SP - CP = 1.19 × CP - CP = 0.19 × CP
Profit % = (0.19 × CP ÷ CP) × 100 = 19%