Explanation:

- The shopkeeper marks the price 20% higher than the cost price. This means the marked price is 120% of the cost price.

- A 10% discount is applied to the marked price.

- Selling price after discount is Rs 5,400.

- Let the cost price (CP) be Rs x.

- Marked Price (MP) = x + 20% of x = 120% of x = 1.2x.

- Selling Price (SP) = MP - 10% of MP = 5400.

- So, 0.9 * 1.2x = 5400.

- Solving gives: 1.08x = 5400 ? x = 5000.

- Profit = SP - CP = 5400 - 5000 = 400.

- Profit Percentage = (Profit/CP) * 100 = (400/5000) * 100 = 8%.

- Therefore, none of the given options are correct, as the profit percentage is actually 8%.