The marked price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the

[Vincen]

The marked price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the marked price, what is the profit % after selling the laptop?

A. 6%
B. 12 %
C. 18 %
D. 20 %
E. Cannot be determined

[spoiler]OA=B[/spoiler]

Source: e-GMAT

[Scott@TargetTestPrep]

The marked price of a laptop is 40% higher than the cost price. If it is sold after applying a discount of 20% on the marked price, what is the profit % after selling the laptop?

A. 6%
B. 12 %
C. 18 %
D. 20 %
E. Cannot be determined

[spoiler]OA=B[/spoiler]

Solution:

We can let the cost price be c. Thus, the market price is 1.4c before the discount, and after the discount, the market price is 0.8 x 1.4c = 1.12c. We see that this is 12% more than the cost price, so the profit is 12%.

Answer: B