A faulty weighing machine reads 1 kg when 900 gm is actually weighted on it. The shopkeeper marked the price of his goods by 10%, but unfortunately he was caught by the metrology department and then they ordered him to repair his weighing machine and gave him the punishment of sell the goods at 10% discount on cost price for a month. If each customer is now paying ₹20 for 1 kg, then before the raid _______ amount they have paid for the same quantity. (Rounded off to two places of decimal)
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹27.16.
Given that
A faulty weighing machine reads 1 kg when 900 gm is actually weighted on it.
The shopkeeper marked the price of his goods by 10%,
Formula used
Profit = S. P. - C.P.
C.P. = [100/(100 - L%)] × 100
S.P. = [(100 + P)/100] × 100
Successive % = x + y + xy/100
where, S.P. = Selling price, C.P. = cost price, x and y are profit %
According to the question
Shopkeeper earns profit of 100 grams = (100/900) × 100 = 11.11%
He earns the profit by marking up the product by 10%
Net profit % = 11.11 + 10 + 11.11 × 10/100 = 22.22 %
Now the new selling price = Rs. 20/kg after given a discount of 10%
Original C.P. of 1 kg sugar = 100/(100 - 20) × 20 = Rs. 22.22
Earlier He selled it at 22.22% profit
Hence, Selling price = (100 + 22.22)/100 × 22.22 = Rs. 27.157 ≈ Rs. 27.16