Mohan marks the cost price of the article is 20% more than the original cost price. If he gives 10% discount to the customer during selling this article, then find the profit or loss of the shopkeeper in this whole business.
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Loss 8%
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Profit 12%
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Profit 10%
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Profit 8%
D
Correct answer
Explanation
Let original cost price = 100. Marked price = 100 + 20% = 120. After 10% discount, selling price = 120 - 10% of 120 = 120 - 12 = 108. Profit = Selling Price - Cost Price = 108 - 100 = 8. Profit percentage = (8/100) × 100 = 8%. This is a common retail markup strategy where merchants first mark up the price, then offer a 'discount' that still results in profit.