Question:easy

A shopkeeper marks his goods 40% above the cost price and then allows a discount of 25%. His profit percent is

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Mark-up factor times discount factor gives the net selling factor on cost; subtract 1 for profit.
Updated On: Jul 8, 2026
  • 5%
  • 10%
  • 15%
  • 12%
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The Correct Option is A

Solution and Explanation

Step 1: Combine the two factors directly.
A single-good chain multiplies the mark-up and the discount factor. So the selling factor on cost is $1.40\times0.75=1.05$.
Step 2: Read the profit.
A factor of $1.05$ on cost means a $5\%$ gain, with no need to pick a base value.
\[\boxed{5\%}\]
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