Multiple choice

A merchant marks up the cost of cloth by 30% and then gives a discount of 20% on the marked price to all his customers. What is his profit/loss percentage in winter when the meter-scale shrinks by 10% due to cold?

  1. 15.56% loss

  2. 16.67% loss

  3. 16.67% profit

  4. 15.56% profit

  5. None
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP of 1m be 100. Marked price = 130. Selling price after 20% discount = 130 * 0.8 = 104. Due to 10% shrinkage, the merchant gives 0.9m for the price of 1m. The cost of 0.9m is 90. Profit = 104 - 90 = 14. Profit % = (14/90) * 100 = 15.555%.

AI explanation

Assume the cost price is 100, so the marked price becomes 130. The shopkeeper gives a 20% discount on the marked price, making the intended selling price 104 for 1 meter of cloth. Due to the 10% shrinkage, he actually sells 0.9 meters for 104, meaning the selling price per actual meter is 104 divided by 0.9, which equals 115.56. This yields a profit percentage of 15.56%.

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