Home › CAT › Quantitative Aptitude › Profit and Loss › A shopkeeper marks goods 40% above cost and then…
A shopkeeper marks goods 40% above cost and then offers a 10% discount. His profit percentage is:
A$30\%$
B$25\%$
C$26\%$
D$28\%$
Answer & Solution
Correct answer: C. $26\%$
Net factor = 1.40 × 0.90 = 1.26. Profit = 26%, NOT 30% (the markup minus discount trap).
Related questions
Oscar buys a barbecue discounted 65% from an original price of $395. The sale price is:Sergio buys a belt discounted 40% from an original price of $29. The discount is:Jim's music store buys a guitar at $1,200 and marks it up 50%. The mark-up is:With a $100 mark-up on a $250 photograph, the list price is:Adam buys a photograph at $250 and marks it up 40%. The mark-up is:The list price should always be:The price a retailer pays for an item is called the:With a $17.05 discount on a $31 swimsuit, the discount rate is: