A public car dealer marked up the cost of a car at 30% in an attempt to make 20% gross profit. Due to the value of dollar, he now placed 20% discount on the car. What profit or loss will he make?
A. 3% B. 2% C. 4% D. 1%
Correct Answer: C
Explanation
Let assume the cost price is 100% Marked up price + cost price = 20 + 100 = 120% Discount at 20% = 20/100 × 120 % of cost price Selling price = cost price − gain = (120 − 24)% of cost price = 96% of cost price Loss = (100− 96)% of cost price = 4% of cost price ∴ He will wake 4% loss
