Multiple choice

A bicycle dealer marks up the price of a bicycle 40% above its cost price. If he sells it at a discount of 10% on the marked price, what is the profit or loss percentage?

  1. 22% profit

  2. 26% profit

  3. 30% loss

  4. 20% loss

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. MP = 140. Selling price = 140 * 0.9 = 126. Profit = 26%.

AI explanation

Assume the cost price of the bicycle is 100. The dealer marks it up by 40%, making the marked price 140. He then offers a 10% discount, so the selling price becomes 90% of 140, which equals 126. Comparing the selling price of 126 to the cost price of 100, the profit is 26%, resulting in a 26% profit.

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