- 7.5% loss
- 7.5% profit
- 9% loss
- 9% profit
- 8% profit

Option 2 : 7.5% profit

Given:

Marked Price of the article = Rs. 40000

Successive discounts = 10% and 5%

Amount spent on repair = Rs. 3000

Selling Price of the article = Rs. 40000

Formulae and Concept Used:

Discount is always given on MP, as follows:

Price after discount = [(100 – % discount)/100] × MP ----(i)

Profit or loss is always calculated on CP. as follows:

% Profit = [(SP – CP)/CP] × 100 ----(ii)

% Loss = [(CP – SP)/CP] × 100 ----(iii)

Calculation:

Price after discount = [(100 – 10)/100] of [(100 – 5)/100] of 40000

⇒ (90/100) × (95/100) × 40000 = 34200

Total CP = 34200 + 3000 = 37200

Hence, we obtain:

Profit = 40000 – 37200 = 2800

Profit % = 2800/37200 × 100 ≈ 7.5%

∴ There is a profit of 7.5%

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