Single correct option
A dishonest shopkeeper uses a weight of 900 g in place of 1 kg. He also marks his goods 20% above the cost price and allows a 10% discount on the marked price. His overall profit percentage is
- A. 18%
- B. 20%
- C. 8%
- D. 28%
Show answer and solution
Answer: (B) 20%
Let the cost of 1 kg (1,000 g) be ₹100, i.e. ₹0.1 per gram.
Selling price for 'one kg' = 100 × 1.2 × 0.9 = ₹108. But he actually hands over only 900 g, which cost him ₹90.
Profit = (108 − 90)/90 = 18/90 = 20%.
Why not 8%? 8% is the gain from pricing alone; it ignores the short weight. Why not 18%? That is the absolute profit in ₹, not a percentage of the true cost (₹90).
Shortcut: (1 + profit) = 1.08 × (1000/900) = 1.2.
Selling price for 'one kg' = 100 × 1.2 × 0.9 = ₹108. But he actually hands over only 900 g, which cost him ₹90.
Profit = (108 − 90)/90 = 18/90 = 20%.
Why not 8%? 8% is the gain from pricing alone; it ignores the short weight. Why not 18%? That is the absolute profit in ₹, not a percentage of the true cost (₹90).
Shortcut: (1 + profit) = 1.08 × (1000/900) = 1.2.
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