Question

A tradesman marks his goods at 40% above the cost price and then allows purchasers a discount of 10% What profit percent does he
earn ?
​

Answer 1

Step-by-step explanation:

$100 Cost of Goods Sold (COGS) * 1.4 (40% markup) = $140

$140 (list price) - ( $140 * .15 = $21) = $119.

$119 (discounted price) / $100 (COGS) = 1.19 (19% profit margin).

If we test this model, will it work with larger numbers?

$200 COGS * 1.4 = $280

$280 (list price) - ($280 * .15 = $42) = $238

$238 / $200 = 1.19 (19% again!)

Answer 2

Answer:

Review it, If answer is correct

Step-by-step explanation:

Let take cost price = 100

Then Mark price = 140

discount on mark price 10% =  140 - 14 = 126

Sales Price = 126

Profit % = Sales Price - Cost price = 126 -100 = 26%