If a person makred a product 25% above the cost price but allows 10% discount, then percentage of profit is:

Options

A. 0.15
B. 0.125
C. 0.35
D. 0.175

Answer

To solve the problem, we need to find the percentage of profit when a product is marked 25% above the cost price and a discount of 10% is allowed on the marked price. Let's break it down step by step.

### Step 1: Define the Cost Price (CP)
Let the cost price (CP) of the product be \( x \).

### Step 2: Calculate the Marked Price (MP)
The marked price (MP) is 25% above the cost price. Therefore, we can calculate the marked price as follows:
\[ MP = CP + 25\% \text{ of } CP = x + 0.25x = 1.25x \]

### Step 3: Calculate the Selling Price (SP)
A discount of 10% is allowed on the marked price. Thus, the selling price (SP) can be calculated as:
\[ SP = MP - 10\% \text{ of } MP = 1.25x - 0.10 \times 1.25x \]
Calculating the discount:
\[ 0.10 \times 1.25x = 0.125x \]
Now substituting back:
\[ SP = 1.25x - 0.125x = 1.125x \]

### Step 4: Calculate the Profit
Profit is calculated as the difference between the selling price and the cost price:
\[ \text{Profit} = SP - CP = 1.125x - x = 0.125x \]

### Step 5: Calculate the Percentage of Profit
The percentage of profit is given by:
\[ \text{Percentage of Profit} = \left( \frac{\text{Profit}}{CP} \right) \times 100 \]
Substituting the values:
\[ \text{Percentage of Profit} = \left( \frac{0.125x}{x} \right) \times 100 = 12.5\% \]

### Final Answer
The percentage of profit is **12.5%**.

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