Multiple choice

A grocery store owner marks up the prices of his products by 15% above the cost price. He sells 90% of the products at the marked price, giving a 5% discount, and the remaining at a 10% discount on the marked price. What is the overall profit/loss percentage for the grocery store owner?

  1. 7.857%

  2. 6.685%

  3. 7.865%

  4. 8.675%

  5. a
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let Cost Price = 100. Marked Price = 115. Selling 90% at 5% discount: 90 * (115 * 0.95) = 9832.5. Selling 10% at 10% discount: 10 * (115 * 0.90) = 1035. Total Revenue = 10867.5. Total Cost = 10000. Profit = 8.675%.

AI explanation

Let the total cost price of the products be 10000, making the total marked price 11500 after a 15% markup. The first portion, 90% of the products, has a marked price of 10350 and sells at a 5% discount for 9832.5. The remaining 10% has a marked price of 1150 and sells at a 10% discount for 1035, making the total selling price 10867.5. The resulting profit is 867.5 on a cost of 10000, yielding an overall profit percentage of 8.675%.

Keep practicing — related questions