Multiple choice

A manufacturer marks his goods at $25\%$ above the cost price. He allows a discount of $15\%$ for cash customers and $10\%$ for credit customers. $4/5$ of the goods are sold for cash and the rest on credit. What is the percentage of profit or loss, when all the goods are sold?

  1. $7.5\%$ Profit
  2. $9.2\%$ Profit
  3. $6.3\%$ Loss
  4. $8\%$ Loss
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100, MP = 125. Cash sales (4/5): Price = 125 * 0.85 = 106.25. Total cash revenue = 0.8 * 106.25 = 85. Credit sales (1/5): Price = 125 * 0.90 = 112.5. Total credit revenue = 0.2 * 112.5 = 22.5. Total revenue = 107.5. Profit = 7.5%.

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