A businessman marks up the price of his goods by 25% and gives a discount of 5% to the customer. He also uses a 950 gm weight instead of a 1000 gm weight. Find his overall profit percentage.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 25%
Let C.P. of 1000 gm be Rs100
⇒ M.P. = 100 + 25% of 100 = 125
⇒ Discount = 5%
⇒ Selling price = (1- d/100) × mp = (1 - 5/100) × 125 = 118.75
Now,
C.P. of 950 gm = Rs95
⇒ Profit = Rs.(118.75 - 95) = Rs23.75
⇒ Profit% = (23.75 / 95) × 100 = 25%