If the marked price is 75% more than the cost price and a discount of 40% is allowed on the marked price, then the percentage profit is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 5%.
Given:
Discount% = 40%
Discount Percentage = (Discount/Marked price) × 100
Let the cost price be 100x
Marked price = 175% of 100x = 175x
Selling price after 40% discount = (100 - 40)% of 175x = 105x
Profit = Selling price - Cost price
⇒ 105x - 100x = 5x
Profit% = (Profit/CP) × 100
⇒ (5x/100x) × 100 = 5%