alleryA retailer marks up a product 40% above cost, then offers a 25% off sale. The net change in selling price relative to cost is:
A5% gain
B10% gain
C15% gain
D20% gain
E25% gain
Answer & Solution
Correct answer: A. 5% gain
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)_
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