A shopkeeper sells rice at the rate of ₹44 per kg whose cost price is ₹40 per kg. Not satisfied with this, he tries to increase his profit by removing 200 grams of rice from each packet. What is the shopkeeper’s overall gain percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 37.5%.
Selling price of the rice = ₹44 per kg
Cost price of the rice = ₹40 per kg
Initial profit per kg = 44 - 40 = ₹4
The shopkeeper removes 200 grams from each 1 kg packet. So, he sells 800g for the price of 1kg.
The effective selling price per kg = 44/(800/1000) = ₹55
Effective gain = 55 - 40 = ₹15
Gain percentage = (15/40) × 100 = 37.5%
Therefore, the shopkeeper’s overall gain percentage is 37.5%.