Multiple choice

A tradesman marks his goods 10% above his cost price. If he allows his customers 10% discount on the marked price, how much profit or loss does he make, if any?

  1. 1% gain

  2. 1% loss

  3. 5% gain

  4. No gain no loss
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. MP = 110 (10% above CP). Discount = 10% of 110 = 11. SP = 110 - 11 = 99. This is a loss of 1 on CP of 100, meaning 1% loss. Many students incorrectly assume equal mark-up and discount cancel out, but the discount is calculated on the higher marked price.

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