Multiple choice

A dealer marks an item $40\%$ above the cost price and offers a discount of $25\%$ on the marked price. What is his profit percentage?

  1. $5\%$
  2. $7\%$
  3. $9\%$
  4. $11\%$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. MP = 140. Discount = 25% of 140 = 35. SP = 140 - 35 = 105. Profit = 105 - 100 = 5. Profit percentage = 5%.

AI explanation

Assume the cost price is 100, making the marked price 140 after a 40% markup. Applying a 25% discount on the marked price gives a selling price of 140 * 0.75 = 105. Using the profit percentage formula, ((Selling Price - Cost Price) / Cost Price) * 100, the profit is ((105 - 100) / 100) * 100, resulting in a 5% profit.

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