While selling an item, a businessman allows a 40% discount on the marked price and incurs a loss of 30%. If the item is sold at the marked price, profit will be _______.
Answer & explanation
Correct answer: option 3
Discount = 40%
Loss = 30%
Let the marked price = 100
then the cost price = 100 × \(\frac{3}{5}\) × \(\frac{10}{7}\) = \(\frac{600}{7}\)
Profit when it is sold at marked price = 100 - \(\frac{600}{7}\)= \(\frac{100}{7}\)
Profit% = \(\frac{100}{7}\) × 100 × \(\frac{7}{600}\) = $16\frac{2}{3}$%