Explanation:

- Let's assume the cost price (CP) of the goods is $100.

- The marked price (MP) is set to gain 40% profit, hence MP = 140% of CP = $140.

- During the sale, a 20% discount is offered on the marked price.

- Discounted selling price (SP) = 80% of MP = 80% of $140 = $112.

- Profit = Selling Price - Cost Price = $112 - $100 = $12.

- Profit Percentage = (Profit / Cost Price) * 100 = ($12 / $100) * 100 = 12%.

?? Answer: Option 1 - 12%