A tradesman marks his goods 25% above the cost price and allows his customers a 12% reduction on their bills. What percentage profit does he make?

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Correct option is D

Given:

A tradesman marks his goods 25% above the cost price.

He allows his customers a 12% reduction on their bills.

Formula Used:

Marked Price = Cost Price + $$\left(\frac{\text{Profit Percentage}}{100}\right) \times \text{Cost Price}$$​​

Selling Price = Marked Price - Discount

Profit = Selling Price - Cost Price

Profit Percentage = $$\left(\frac{\text{Profit}}{\text{Cost Price}}\right) \times 100$$​​

Solution:

Let's assume:

Cost price of the goods = 100

Marked price = 100 + $$\frac{25}{100} \times 100$$​​

Marked price = 100 + 25

Marked price = 125

Discount = $$\frac{12}{100}\times$$​ 125

Discount = 15

Selling price = Marked price - Discount

Selling price = 125 - 15

Selling price = 110

Profit = Selling price - Cost price

Profit = 110 - 100

Profit = 10

Profit percentage = $$\left(\frac{\text{Profit}}{\text{Cost Price}}\right) \times 100$$​​

Profit percentage =  $$\frac{10}{100} \times$$​100

Profit percentage = 10%

Therefore, the tradesman makes a profit of 10%.

Option (d) is right.