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: Option 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
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