Question

A shopkeeper marks his goods 40% above cost price and then allows a discount of 10% on the marked price. What is his profit percentage?

• A. 24%
• B. 25%
• C. 26%
• D. 30%

Hint:

Recall the shortcut formula for combining two successive percentage changes instead of computing the marked price and selling price separately.

Answer 1

The Correct Option is C

Step 1: Two successive percentage changes are applied to the cost price: a markup of $+40\%$ followed by a discount of $-10\%$.
Step 2: Net percentage change for two successive changes $a\%$ and $b\%$ is given by $a+b+\dfrac{ab}{100}$, with $a=+40,\ b=-10$.
Step 3: Net change $=40+(-10)+\dfrac{(40)(-10)}{100}=40-10-4=26$.
Step 4: Since the net change is positive, this represents a net profit of $26\%$.
\[\boxed{26\%}\]