A dishonest merchant sells his groceries using weights that are 12% less than the true weights and makes a profit of 10%. Find his total gain percentage.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 25%.
The merchant uses weights that are 12% less than the actual weights
This means he is using only 88% of the true weight
So, for every 100 kg of goods that he claims to sell, he is selling only 100 × 0.88 = 88 kg
Let's assume the cost price (CP) of 1 kg of grocery is ₹1
The cost price of 88 kg of grocery = 88 × 1 = ₹88
Since He sells the groceries at a 10% profit on the cost price of 100 units:
SP = CP + (10% × CP) = 100 + 10 = ₹110
The cost price of 88 units (weight delivered) is:
Effective CP = CP of 100 units/100 × 88 = (100 × 88)/100 = ₹88
Gain = SP − Effective CP = ₹110 − ₹88 = ₹22
Gain percentage = (Gain/Effective CP) × 100
⇒ 22/88 × 100 = 25%