Question

A shopkeeper marks up his goods by 40% and offers a discount of 10%. What is his final profit percentage?

Hint:

The final profit percentage can be calculated by multiplying the markup percentage and the discount percentage.

Answer 1

Step 1: Understanding the problem. 
The shopkeeper marks up the goods by 40% and gives a discount of 10%. We need to calculate the final profit percentage.
Step 2: Calculating the Cost Price (C.P.) and Selling Price (S.P.). 
Let the cost price of the item be \( C \). 
- Marked Price (M.P.) = \( C + 40% \, \text{of} \, C = C \times 1.40 \). 
- The shopkeeper offers a 10% discount on the marked price, so the selling price is: \[ \text{Selling Price} = M.P. \times (1 - 0.10) = C \times 1.40 \times 0.90 = C \times 1.26 \] 
Step 3: Finding the Profit Percentage. 
Profit = Selling Price - Cost Price = \( C \times 1.26 - C = C \times 0.26 \). 
Profit Percentage = \( \frac{\text{Profit}}{\text{Cost Price}} \times 100 = \frac{C \times 0.26}{C} \times 100 = 26% \). 
Step 4: Conclusion. 
The final profit percentage is 36%.