Subir claimed to sell his items at only 5% above the cost of production, but used a weight that had 1 kg written on it, though it actually weighed 960 grams. What was the actual profit percentage earned by Subir?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 9.375%
According to the question,
Let the Cost Price of item be Rs. 1000, then
Marked Up Price = 5% of CP + CP
⇒ MP = 1000 (1 + 5%)
⇒ MP = 1000 × 1.05 = Rs. 1050
But he Sold 960g instead of 1kg for Rs. 1050
Then CP of 960g = Rs. 960
⇒ Profit% = (1050 - 960)/960 × 100
⇒ Profit% = 90/960 × 100 = 9.375%