Single correct option
A trader marks his goods 40% above the cost price and allows a discount of 15% on the marked price. In addition, he uses a weight of 900 g in place of 1 kg while selling. His overall profit percentage is
- A. 29%
- B. 32 2/9%
- C. 30 1/2%
- D. 34 1/9%
Show answer and solution
Answer: (B) 32 2/9%
Take the cost of 1 kg as 100. Marked price = 140; selling price after 15% discount = 140 × 0.85 = 119.
But the customer who pays 119 receives only 900 g, which cost the trader 90.
Profit % = (119 − 90)/90 × 100 = 29/90 × 100 = 32 2/9%.
Why not 29%? That is the profit on 1 kg ignoring the false weight; the trader actually spends only 90, not 100, per sale.
Tip: Overall multiplier = (1.4 × 0.85)/0.9 = 1.3222 → 32.22% profit.
But the customer who pays 119 receives only 900 g, which cost the trader 90.
Profit % = (119 − 90)/90 × 100 = 29/90 × 100 = 32 2/9%.
Why not 29%? That is the profit on 1 kg ignoring the false weight; the trader actually spends only 90, not 100, per sale.
Tip: Overall multiplier = (1.4 × 0.85)/0.9 = 1.3222 → 32.22% profit.
Saved on this device. Sign in or create a free account to keep it on every device.