Question : A merchant marks up the price of his goods by 40% more than the cost price. He then sells
Option 1: 20.4%
Option 2: 30.4%
Option 3: 28.8%
Option 4: 14.6%
Correct Answer: 28.8%
Solution :
Let the cost price of 1 kg of goods be Rs. 100.
Let the total goods be 100 kg.
The marked price of 1 kg of the goods = 100 + 40 = 140
He sells
He sells half of the goods at the marked price.
He sells the rest of the goods at a discount of 20%.
Amount of goods left = 100 – 20 – 50 = 30 kg
Total selling price = 2520 + 7000 + 3360 = 12880
Hence, the correct answer is 28.8%.
