If a tradesman marks his goods 25% above the cost price and allows his customers a 12% reduction on their bill, then the percentage profit he makes is ______.
Answer & explanation
Correct answer: option 4
Let the cost price of the goods = 100
Mark up = 25%
Marked price = 125
Reduction = 12%
Selling price of the goods = 125 × \(\frac{100 - 12}{100}\) = 125 × \(\frac{88}{100}\) = 110
Profit % = (110 - 100) × \(\frac{100}{100}\) = 10%