Marked up 40%, discounted 10% — Aptitude Question
Marked up 40%, discounted 10%: A shopkeeper marks goods 40% above cost and then allows a 10% discount on the marked… Answer and worked solution on CodeKairo.
- Topic: Profit & Loss
- Section: Quantitative Aptitude
- Difficulty: Medium
- Time target: 60 seconds
Question
A shopkeeper marks goods 40% above cost and then allows a 10% discount on the marked price. What is the profit percent?
Options
- 24%
- 26%
- 30%
- 36%
Show the answer and the worked solution
Correct answer: B. 26%
Worked solution
- Let CP = 100. Marked price = 140.
- Discount = 10% of 140 = 14, so SP = 126.
- Profit = 26 on a cost of 100 = 26%.
Answer: 26%.
The idea
Chain the multipliers: CP × 1.40 × 0.90 = CP × 1.26. Markup and discount are percentages of different bases, so they never simply subtract.
Shortcut. Net change = a + b + ab/100 with b = −10: 40 − 10 − 4 = 26%.
Common trap. 30% — subtracting the 10% discount from the 40% markup; the discount is taken on 140, so it removes 14, not 10.