Question

A shopkeeper marked an item 25% above its cost price. During a sale, he offered a discount of 10%. What was his profit percentage?

• A. 10%
• B. 12.5%
• C. 15%
• D. 17.5%

Answer 1

Answer:

B. 12.5%

Let the cost price be ₹100.

Marked price is (25%) above cost price:

MP= 100 + 25 = ₹125

A discount of (10%) is given on marked price:

$SP= 125 \times \frac{90}{100}$
= 112.5

Profit:

112.5 - 100 = 12.5

Profit percentage:

$\frac{12.5}{100}\times100 = 12.5\%$

Therefore, the profit percentage is:

$\boxed{12.5\%}$