Multiple choice

Jane owns a small bookstore in a quaint town. She buys a batch of 200 books for $1,200 in total. She decides to mark up the price of each book by 40% to set the selling price. However, to attract more customers, she offers a promotional discount of 20% on the marked price. Despite the discount, Jane still makes a profit on each book. What is the profit percentage Jane makes on each book after applying the discount?

  1. 10%

  2. 12%

  3. 15%

  4. 16%

  5. 18%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let cost price = 100. Marked price = 140. Selling price = 140 * 0.8 = 112. Profit = 112 - 100 = 12. Profit percentage = 12%.

AI explanation

Using a base cost of 100, the marked price becomes 140 after the 40% markup. A 20% discount on 140 reduces the price by 28, resulting in a final selling price of 112. Comparing this final price to the original cost of 100, the profit is 12%. The result is 12%.

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