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CAT 2022 Slot 3 · Quant · Profit, Loss and Discount · medium

A shopkeeper marks his goods 25% above the cost price and offers a discount of 20% on the marked price. However, while selling, he uses a weight of…

Single correct option

A shopkeeper marks his goods 25% above the cost price and offers a discount of 20% on the marked price. However, while selling, he uses a weight of 800 g in place of 1 kg. Find his overall profit percentage.
  1. A. 20%
  2. B. 22.5%
  3. C. 25%
  4. D. 30%
Show answer and solution

Answer: (C) 25%

Let cost per kg = C. Marked price = 1.25C. Selling price after 20% discount = 1.25C × 0.80 = 1.00C, charged for what is actually only 800 g, whose true cost is 0.8C. Profit = 1.00C − 0.8C = 0.2C on a cost of 0.8C, so profit% = 0.2C/0.8C × 100 = 25%. Shortcut: combine markup, discount and weight-fraction multiplicatively — (1.25×0.80)/0.8 − 1 = 0.25.
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Original question written in the CAT 2022 Slot 3 pattern and checked twice for the correct answer. Not an official question paper. How we write and check questions · Corrections policy · Report a mistake