If a seller marks a product at $400 and gives a discount of 25%, what is the pro

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Question: If a seller marks a product at $400 and gives a discount of 25%, what is the profit if the cost price is $250? (2023)

Options:

Correct Answer: $100

Exam Year: 2023

Solution:

Selling Price = $400 - (25% of $400) = $400 - $100 = $300. Profit = Selling Price - Cost Price = $300 - $250 = $50.

If a seller marks a product at $400 and gives a discount of 25%, what is the profit if the cost price is $250? (2023)

If a seller marks a product at $400 and gives a discount of 25%, what is the profit if the cost price is $250? (2023)

Step 1: Identify the marked price of the product, which is $400.
Step 2: Calculate the discount amount by finding 25% of the marked price. This is done by multiplying $400 by 0.25.
Step 3: Calculate the discount amount: $400 * 0.25 = $100.
Step 4: Subtract the discount amount from the marked price to find the selling price. This is $400 - $100.
Step 5: Calculate the selling price: $400 - $100 = $300.
Step 6: Identify the cost price of the product, which is $250.
Step 7: Calculate the profit by subtracting the cost price from the selling price. This is $300 - $250.
Step 8: Calculate the profit: $300 - $250 = $50.

Percentage Calculation – Understanding how to calculate discounts as a percentage of a marked price.
Profit Calculation – Calculating profit by subtracting the cost price from the selling price.