Single correct option
A dishonest trader uses a weight of 900 g in place of 1 kg and sells his goods at 5% below the cost price. What is his profit or loss percentage?
- A. Profit of 4 1/2%
- B. Profit of 5%
- C. Profit of 5 5/9%
- D. Loss of 5%
Show answer and solution
Answer: (C) Profit of 5 5/9%
Let the cost price be ₹1 per gram. The customer pays for 1 kg at 5% below cost: 1000 × 0.95 = ₹950.
But the trader actually hands over only 900 g, which cost him ₹900.
Profit = 950 − 900 = ₹50 on a cost of ₹900 ⇒ 50/900 × 100 = 5 5/9%.
Option 'Profit of 5%' wrongly uses 1000 as the base; 'Profit of 4 1/2%' comes from simply subtracting 5 from 10 (the two percentages cannot be added or subtracted directly).
Formula: Profit % = (SP of goods delivered − CP of goods delivered)/CP × 100.
But the trader actually hands over only 900 g, which cost him ₹900.
Profit = 950 − 900 = ₹50 on a cost of ₹900 ⇒ 50/900 × 100 = 5 5/9%.
Option 'Profit of 5%' wrongly uses 1000 as the base; 'Profit of 4 1/2%' comes from simply subtracting 5 from 10 (the two percentages cannot be added or subtracted directly).
Formula: Profit % = (SP of goods delivered − CP of goods delivered)/CP × 100.
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