Multiple choice

An uneducated retailer marks all his goods at 50% above the cost price and thinking that he will still make 25% profit, offers a discount of 25% on the marked price. What is his actual profit on the sales?

  1. 11%

  2. 12%

  3. 12.50%

  4. 13.50%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Marked price = 150. Discount = 25% of 150 = 37.5. Selling price = 150 - 37.5 = 112.5. Profit = 112.5 - 100 = 12.5%.

AI explanation

Let the cost price be 100, which makes the marked price 150 after being marked up by 50%. The shopkeeper offers a 25% discount on the marked price, making the selling price 150 multiplied by 0.75, which is 112.5. The profit is the selling price minus the cost price, resulting in 112.5 minus 100, which equals 12.5. Therefore, the actual profit on the sales is 12.50%.

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