A retailer marks up a product 40% above cost, then offers a 25% off sale. The net change in selling price relative to cost is:

1. Identify what is being asked: this is a **Profit And Loss** question. 2. Apply the standard approach for this question type to evaluate each option. 3. The correct answer is **A. 5% gain** — it satisfies the conditions of the stem. _Source: GMAC Official 12 Sample Questions (mba.com)_