A dishonest shopkeeper sells rice at a cost price but makes a 25% profit by using faulty weights. He decides to give a discount to attract more customers. What percentage discount should he offer to make a 10% profit?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 12%.
Given that
A dishonest shopkeeper sells rice at a cost price but makes a 25% profit by using faulty weights.
Let the cost price of rice be 100 units
According to the question
For a 25% profit, the marked price = 100 + 25/100 × 100 = 125 units
Now, After getting discount (D), he gain 10% profit
As we know,
⇒ C.P./M.P. = (100 - D)/(100 + P)
⇒ 100/125 = (100 - D)/110
⇒ 100 - D = 88
⇒ D = 100 - 88 = 12%
Hence, the required discount is 12%