Multiple choice

A wholesaler is selling 900 gm rice at a cost of a kilogram to the retailer at a price which is 14% more than the cost price at which the wholesaler purchased 1 kg rice. What is the net profit % of the wholesaler?

  1. 26.67%

  2. 25.13%

  3. 21.66%

  4. 20.61%

  5. 19.35%
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A Correct answer
Explanation

Let CP of 1 kg be 100. Wholesaler sells 900g for 114. The CP of 900g is 90. Profit = 114 - 90 = 24. Profit % = (24/90) * 100 = 26.67%.

AI explanation

Let the cost price of 1 gram of rice to the wholesaler be Re. 1, making the cost price of 1 kg equal to Rs. 1000. The wholesaler sells 900 grams at this 1 kg price increased by 14%, so the selling price for the 900 grams becomes 1000 times 1.14, which equals Rs. 1140. The actual cost price for the sold 900 grams is only Rs. 900. Using the profit percentage formula Profit Percent = ((Selling Price minus Cost Price) divided by Cost Price) times 100, the calculation is ((1140 minus 900) divided by 900) times 100, resulting in a 26.67% profit.

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