Multiple choice

A dishonest dealer sells goods to a customer at a price which is 6.25% less than the cost price. However he cheats the customer by using a weight of 14g instead of 16g. What is the percentage of his profit/loss?

  1. 8.12% profit

  2. 8.12% loss

  3. 7.14% profit

  4. 7.14% loss

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP of 16g be 16. Selling price of 16g is 6.25% less than cost, so SP = 16 * (1 - 0.0625) = 15. The dealer uses 14g instead of 16g, so the cost of 14g is 14. Profit = SP - CP = 15 - 14 = 1. Profit % = (1/14) * 100 = 7.14%.

AI explanation

Let the cost price for 16g be 16, making the effective cost price for the 14g weight used equal to 14. The dealer sells this 14g at a price 6.25% less than the 16g cost price, making the selling price 16 multiplied by 0.9375, which equals 15. Using the profit formula, Profit% = ((15 - 14) / 14) * 100, resulting in a 7.14% profit.

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