Assume Cost Price

Let the original Cost Price ($CP$) of the goods be $100$. This simplifies percentage calculations.

$CP = 100$

Calculate Marked Price

The goods are marked up by $40\%$ above the Cost Price. Add $40\%$ of $100$ to the $CP$.

$MP = 100 + 40 = 140$

Calculate Discount Amount

A discount of $25\%$ is given on the Marked Price ($MP$).

$\text{Discount} = \frac{25}{100} \times 140 = 35$

Find the Selling Price

Subtract the calculated discount from the Marked Price to determine the final Selling Price ($SP$).

$SP = 140 - 35 = 105$

Determine Net Profit Percentage

Since the $CP$ is $100$, the profit percentage is simply the difference between the $SP$ and the $CP$.

$\text{Profit \%} = 105 - 100 = 5\%$