A retailer buys product from a shopkeeper at discount of 40% on the list price (marked price) and sells them to the customer at a discount of 25% on the list price.What is his profit percentage ?

Options

A. A. 20%
B. B. 12%
C. C. 25%
D. D. 30%

Explanation

To solve the problem, we need to determine the profit percentage of the retailer based on the discounts given on the list price (marked price). Let's break it down step by step.

### Step 1: Define the List Price
Let the list price (marked price) of the product be denoted as \( P \).

### Step 2: Calculate the Purchase Price
The retailer buys the product at a discount of 40% on the list price. Therefore, the purchase price (cost price) for the retailer can be calculated as follows:

\[ \text{Cost Price} = P - (40\% \text{ of } P) = P - 0.4P = 0.6P \]

### Step 3: Calculate the Selling Price
The retailer sells the product at a discount of 25% on the list price. Therefore, the selling price can be calculated as follows:

\[ \text{Selling Price} = P - (25\% \text{ of } P) = P - 0.25P = 0.75P \]

### Step 4: Calculate the Profit
Profit is calculated as the difference between the selling price and the cost price:

\[ \text{Profit} = \text{Selling Price} - \text{Cost Price} = 0.75P - 0.6P = 0.15P \]

### Step 5: Calculate the Profit Percentage
Profit percentage is calculated based on the cost price:

\[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{\text{Cost Price}} \right) \times 100 = \left( \frac{0.15P}{0.6P} \right) \times 100 \]

Simplifying this gives:

\[ \text{Profit Percentage} = \left( \frac{0.15}{0.6} \right) \times 100 = 0.25 \times 100 = 25\% \]

### Final Answer
The retailer's profit percentage is **25%**.

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