An item is marked at 20% more than its cost price by the retailer. He then offers a 10% discount. Determine the shopkeeper's percentage of profit.
Show answer & explanation
Correct answer: B
Explanation
Given:
Marked price = 20% above the cost price
Discount = 10%
Let's say the cost price = 100
Marked price = 100 + 20% of 100 = 120
Selling price = 120 × 0.90 = 108
Profit = 108 − 100 = 8
Profit percentage = (8 / 100) × 100 = 8%