A dishonest dealer sells articles at 15% loss on cost price but uses the weight of 20 g instead of 25 g. What is his profit or loss percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 6.25% Profit.
The dealer is selling the article at a 15% loss on cost price;
So the selling price (SP) for 25 grams of the article = CP − 15% of CP = 0.85 × CP
Actual CP for 20 g = 20/25 × CP = 0.8 × CP
Profit = SP for 20 g − CP for 20 g
Profit = 0.85 × CP − 0.8 × CP = 0.05 × CP
Profit % = (Profi/CP for 20g) ×100
Profit % = (0.8 × CP)/(0.05 × CP) × 100 = 0.05/0.8 × 100 = 6.25%