Question

    A retailer marks up an item's cost price by 40% and then offers it for sale with a 20% discount. What is the percentage profit made by the retailer on this sale?

    A 15% Correct Answer Incorrect Answer
    B 10% Correct Answer Incorrect Answer
    C 16% Correct Answer Incorrect Answer
    D 12% Correct Answer Incorrect Answer

    Solution

    Let the cost price of the article be Rs. '100x'. So, selling price of the article = 100x X 1.4 = Rs. '140x' So, gain earned by the seller = 140x X 0.8 = Rs. '112x' So, gain percentage = {(112x - 100x) /100x} X 100 = 12% Hence, option d.

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