Single correct option
A dishonest shopkeeper uses a weight of 900 g in place of 1 kg and also sells his goods at 10% above the cost price. What is his overall profit percentage?
- A. 20%
- B. 21%
- C. 22 2/9%
- D. 23 1/3%
Show answer and solution
Answer: (C) 22 2/9%
Let the cost price of 1 kg be ₹100. For what he calls 1 kg he charges 10% above cost, i.e. ₹110.
But he actually hands over only 900 g, which cost him ₹90.
Profit = (110 − 90)/90 × 100 = 200/9 = 22 2/9 %.
Tip: combine the two effects multiplicatively — (1.1 ÷ 0.9) − 1 = 2/9. Adding 10% + 10% = 20% is the trap.
But he actually hands over only 900 g, which cost him ₹90.
Profit = (110 − 90)/90 × 100 = 200/9 = 22 2/9 %.
Tip: combine the two effects multiplicatively — (1.1 ÷ 0.9) − 1 = 2/9. Adding 10% + 10% = 20% is the trap.
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