Mohan purchased a bag with 20 percent discount on the labelled price. He sold it with 40 percent profit on the price he bought. The percentage of profit on the labelled price is:

A. 12%

B. 20%

C. 18%

D. 24%

Answer: Option A

Solution(By Examveda Team)

Let the labelled price was 100.
So, his Cost Price = 100 - 20% of 100 = 80.
Now his selling price = 80 + 40% of 80 = 112.
profit on labeled price = 112 - 100 = 12.
%profit of labelled price = (12/100) * 100 = 12%.