Question

A shopkeeper marks his goods 40% above cost price and offers a 10% discount. What is his percentage profit? 
 

• A. 20%
• B. 26%
• C. 30%
• D. 34%

Hint:

Net profit \% = (Markup \% - Discount \%) + (Markup \% × Discount \% / 100). Here: (40 - 10) + (40 × 10 / 100) = 30 + 4 = 34? Wait—no, correct formula is applied via direct calculation for accuracy.

Answer 1

The Correct Option is B

Step 1: Understanding the question. 
The question requires calculating profit percentage after markup and discount. 
Step 2: Analyzing the options. 
Let cost price = ₹100. Marked price = ₹140. After 10% discount, selling price = 140 × 0.9 = ₹126. Profit = ₹26, so profit % = 26%. 
(A) 20%: Incorrect — Underestimation. 
(B) 26%: Correct — Matches calculation. 
(C) 30%: Incorrect. 
(D) 34%: Incorrect — Would be if no discount. 
Step 3: Conclusion. 
The correct answer is (B) 26%, as net profit is 26% of cost price.