A dealer marks an item `40%` above the cost price and offers a discount of `25%` on the marked price. What is his profit percentage ?

Answer

To solve the problem step by step, let's break it down:

### Step 1: Define the Cost Price (CP)
Let the Cost Price (CP) of the item be Rs 100.

**Hint:** Start with a simple value for CP to make calculations easier.

### Step 2: Calculate the Marked Price (MP)
The dealer marks the item 40% above the cost price.
- Marked Price (MP) = CP + 40% of CP
- MP = 100 + (40/100) * 100
- MP = 100 + 40 = Rs 140

**Hint:** To find the marked price, add 40% of the cost price to the cost price itself.

### Step 3: Calculate the Discount
The dealer offers a discount of 25% on the marked price.
- Discount = 25% of MP
- Discount = (25/100) * 140 = Rs 35

**Hint:** To find the discount, calculate 25% of the marked price.

### Step 4: Calculate the Selling Price (SP)
The Selling Price (SP) is calculated by subtracting the discount from the marked price.
- SP = MP - Discount
- SP = 140 - 35 = Rs 105

**Hint:** The selling price is the marked price minus the discount.

### Step 5: Calculate the Profit
Profit is the difference between the Selling Price and the Cost Price.
- Profit = SP - CP
- Profit = 105 - 100 = Rs 5

**Hint:** Profit is simply the selling price minus the cost price.

### Step 6: Calculate the Profit Percentage
Profit Percentage is calculated using the formula:
\[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{\text{CP}} \right) \times 100 \]
- Profit Percentage = (5 / 100) * 100 = 5%

**Hint:** To find the profit percentage, divide the profit by the cost price and multiply by 100.

### Final Answer
The profit percentage is **5%**.

---