An item is marked 37.5% above the cost price. If a discount of 9.09% is allowed, then the profit percentage (correct to nearest integer) is:
Answer & explanation
Correct answer: option 1
Cost price of the article = 100
Markup = 37.5%
Marked price = 137.5
Discount = 9.09% = \(\frac{1}{11}\)
Selling price = 137.5 × \(\frac{10}{11}\) = 125
Profit % = 125 - 100 = 25%