# SOLUTION: If a shopkeeper marks the price of goods 50% more than their cost price and allows a discount of 40%, what is his gain% or loss%? A)20% loss B)20% gain C)10% loss D)10% gain

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 Click here to see ALL problems on percentage Question 487107: If a shopkeeper marks the price of goods 50% more than their cost price and allows a discount of 40%, what is his gain% or loss%? A)20% loss B)20% gain C)10% loss D)10% gainAnswer by Theo(3504)   (Show Source): You can put this solution on YOUR website!c = cost p = price d = discount rate (discount rate = discount percent divided by 100) s = sale price m = markup rate (markup rate = markup percent divided by 100) your formula would be: s = (1-d)*p where: p = (1+m)*c if you put these 2 formulas together, you get: s = (1-d)*(1+m)*c you have: d = .40 m = .50 your formula becomes: s = (.6)*(1.5)*c which becomes: s = .9*c .9 is equivalent to 90% of cost which represents a 10% loss. let's see how that works in real life. assume the cost is \$100.00 you mark it up to make the price equal to \$150.00 you give a 40% discount which brings the sale price down to \$150.00 minus .40 * \$150.00 which equals \$150.00 minus 60 dollars which equals \$90.00 your cost was \$100. your sale price was \$90.00 you lost \$10.00 that represents a loss of \$10/\$100 = 10%