Numerical answer
A dishonest grocer uses a weight of 880 g in place of 1 kg and also charges 10% more than the cost price. What is his overall profit percentage?
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Answer: 25
Take the cost price of 1 kg as Rs 100, so 1 g costs Rs 0.10.
The customer pays for 1 kg at 10% above cost: Rs 110.
The grocer actually hands over only 880 g, which cost him Rs 88.
Profit % = (110 − 88)/88 × 100 = 22/88 × 100 = 25%.
Tip: Overall factor = (price multiplier)/(fraction of goods actually given) = 1.1/0.88 = 1.25. Adding 10% and 12% (to get 22%) is the classic error.
The customer pays for 1 kg at 10% above cost: Rs 110.
The grocer actually hands over only 880 g, which cost him Rs 88.
Profit % = (110 − 88)/88 × 100 = 22/88 × 100 = 25%.
Tip: Overall factor = (price multiplier)/(fraction of goods actually given) = 1.1/0.88 = 1.25. Adding 10% and 12% (to get 22%) is the classic error.
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