A tradesman marks his goods 10% above his cost price. If he allows his customers 10% discount on the marked price, how much profit or loss does he make, if any ?

Options

A. 1% gain
B. 1% loss
C. 5% gain
D. No gain, no loss

Answer

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

### Step 1: Determine the Cost Price (CP)
Let’s assume the cost price (CP) of the goods is Rs. 100.

### Step 2: Calculate the Marked Price (MP)
The tradesman marks his goods 10% above the cost price.
- Marked Price (MP) = Cost Price + 10% of Cost Price
- MP = 100 + (10/100) * 100
- MP = 100 + 10
- MP = Rs. 110

### Step 3: Calculate the Selling Price (SP) after Discount
The tradesman allows a 10% discount on the marked price.
- Discount = 10% of Marked Price
- Discount = (10/100) * 110
- Discount = Rs. 11

Now, we calculate the selling price (SP):
- Selling Price (SP) = Marked Price - Discount
- SP = 110 - 11
- SP = Rs. 99

### Step 4: Determine Profit or Loss
Now we compare the selling price with the cost price to determine profit or loss.
- Cost Price (CP) = Rs. 100
- Selling Price (SP) = Rs. 99

Since the selling price is less than the cost price, the tradesman incurs a loss.
- Loss = Cost Price - Selling Price
- Loss = 100 - 99
- Loss = Rs. 1

### Conclusion
The tradesman makes a loss of Rs. 1.

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