A merchant fixes the sale price of his goods at 90% above the cost price. He sells his goods at 18% discount. His percentage of profit is:

Correct option is A

Given:

Marked Price (M.P.) = 90% above Cost Price (C.P.).

Discount = 18% on M.P.

Formula Used:

Profit % =$$\frac{S.P. - C.P.}{C.P.} \times 100$$​

Solution:

Let C.P. = 100.

M.P. =$$C.P. \times (1 + \tfrac{90}{100}) = 1.9 \times C.P.$$​​

Then M.P. = 100 × 1.9 = 190.

Selling Price(S.P.) after 18% discount:

​​$$S.P. = M.P. \times (1 - \tfrac{18}{100})$$​
S.P. =$$190 \times \frac{82}{100}$$​ = 155.8

Profit = 155.8 - 100 = 55.8.

Profit % =$$\frac{55.8}{100} \times 100 = 55.8\%$$​