An uneducated retailer marks all his goods at 40% above the cost price and thinking that he will still make 25% profit, offers a discount of 25% on the marked price. What is his actual profit on the sales?
Choose the correct option.
A) 12.50 % B) 13.50 % C) 5 % D) 14.50 % E) none

Rationale: sol . let c . p . = rs . 100 . then , marked price = rs . 140 . s . p . = 75 % of rs . 140 = rs . 105 . ∴ gain % = 5 % . answer c
Answer: C