A grocer sells rice at a profit of 20% but mixes stones and claims the weight is 1 kg when it is actually 800 g. What is his actual profit percentage?
Show answer & explanation
Correct answer: A
Explanation
Profit = 20% ⇒ SP = 120% of CP
Actual weight = 800 grams (instead of 1 kg)
Assume CP (for 1 kg) = 100
SP (for 1 kg) = 120
However, the quantity delivered = 0.8 kg
CP for 0.8 kg = 80
Profit = 120 − 80 = 40
Profit % = (40/80) × 100 = 50%