Multiple choice

A shopkeeper marks his goods at 40% above the cost price and allows a discount of 40% on the marked price. What is his loss or gain percentage?

  1. No loss and no gain

  2. 16% loss

  3. 16% gain

  4. 20% loss

  5. 20% gain
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. MP = 140. Discount = 40% of 140 = 56. SP = 140 - 56 = 84. Loss = 100 - 84 = 16%.

AI explanation

Assuming the cost price is 100, the marked price becomes 140 after a 40% markup. The shopkeeper then allows a 40% discount on this marked price, making the selling price 60% of 140, which equals 84. Comparing this selling price to the original cost price of 100 reveals a difference of 16, resulting in a 16% loss.

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