Question

A shopkeeper marks his goods at $40$% above the cost price and allows a discount of $40$% on the marked price. His loss or gain is:

• A. $16$ %loss
• B. $16$ %profit
• C. $20$ %loss
• D. no profit no loss

Answer 1

Answer: (A)

Let's assume cost price = X Rs

Since marked price is 40% above cost price.

$\therefore MP=CP+40\%ofCP=X+\frac{40X}{100}=\frac{7X}{5}Rs$

Discount $=40\%$

$\therefore SP=MP-Discount$

$\Rightarrow SP=\frac{7X}{5}-40\%of\frac{7X}{5}$

$\Rightarrow SP=\frac{7X}{5}-\frac{40}{100}\times \frac{7X}{5}$

$\Rightarrow SP=\frac{7X}{5}-\frac{14X}{25}=\frac{21X}{25}$

Here SP < CP, so there will be a loss.

$\therefore Loss=CP-SP=X-\frac{21X}{25}=\frac{4X}{25}Rs$

$\Rightarrow Losspercentage=\frac{loss\times 100}{CP}=\frac{\frac{4X}{25}\times 100}{X}=16\%$