Question
A tradesman marks his goods 32% above the cost price and
allows his customers 10% reduction on their bills. What percentage profit does he make?Solution
The tradesman marks his goods 32% above the cost price, so a = 32%. He then gives a 10% discount, which is a reduction, so b = -10%. Use formula - a+b+ab/100 Overall Percentage Change = 32+ (-10) + 32 × (-10)/100 Overall Percentage Change = 22-3.2 =18.8% Thus, the tradesman makes an 18.8% profit.
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