A merchant bought an item for $80. He marked it up by 25% and then offered a 10% discount on the marked price. What was his profit percentage?

Question

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A) 12.5%. Cost Price (CP) = $80. Marked Price = $80 * (1 + 0.25) = $100. Selling Price (SP) = $100 * (1 - 0.10) = $90. Profit = SP - CP = $90 - $80 = $10. Profit Percentage = ($10/$80) * 100% = 12.5%.

A merchant bought an item for $80. He marked it up by 25% and then offered a 10% discount on the marked price. What was his profit percentage?

✓ Correct Answer: Option A

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