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Call the merchant's cost 'C'. After marking up the merchandise 40% from

his cost, he hangs a price tag on it marked [ 1.4C ].

A customer walks in who's willing to buy if he can get a deal. The merchant

offers him a 10% discount, whereupon the customer ... thinking he has out-

smarted the merchant ... pulls out his plastic and makes the purchase.

The price he pays is 10% below the figure on the price tag, or (0.9) of (1.4C) = 1.26C .

The merchant has collected 26% over and above his cost.

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Q: A merchant marks his radios at 40 percent above cost price but gives a discount of 10 percent on the marked price what is his actual gain percent?
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