A store owner marks goods 50% above the cost price and then gives a discount of 40% on the marked price. What is the overall result?

💡 Solution & Explanation

Take the cost price as 100. The marked price is 150. A 40% discount on 150 is 60, so the selling price is 90. Compared with the cost of 100, that is 10% loss. Subtracting the percentages (50 − 40 = 10) is a common mistake, because the discount is on the higher marked price.