A shopkeeper marks his goods 25% above the cost price. Then, he allows a 40% discount on it. What is the percentage loss?
Answer & explanation
Correct answer: option 1
Let the cost price of the goods = 100
Markup = 25%
Then the selling price of the goods = 125% of 100 = 125
Discount = 40%
Now the SP of the goods = 125 × \(\frac{60}{100}\) = 75
Loss = 1200 - 75 = 25
Loss% = 25 × \(\frac{100}{100}\) = 25%