Question

A shopkeeper marked an article at 30% more than the price he paid for it. If he allows a discount of 40% on the marked price while selling it, what would be his profit or loss per cent?
1. No profit or loss
2. Profit 22%
3. Loss 22%
4. Cannot determine

Answer 1

Correct Answer - Option 3 : Loss 22%

Given:

Discount = 40%

Formula used:

SP = MP × (100 - D%)/100

Loss = SP - CP

Loss % = (Loss/CP) × 100

Calculation:

Let the cost price of the article be 100x

So, marked price of article = 130x

After 40% discount on the marked price 

Selling Price = 130x - 40% of 130x = 130x - 52x = 78x

So, there is loss

Loss = 100x - 78x = 22x

Loss % = (22x/100x) × 100 = 22%

∴ Shopkeeper has a loss of 22%.