Multiple choice

A trader has a weighing scale that shows 1200 grams for a kilogram. He further marks up his cost price by 10%. Then the net profit percentage is:

  1. 31%

  2. 32%

  3. 23.50%

  4. 23%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The trader gains 200g for every 1000g sold, which is a 20% gain in quantity. Combined with a 10% markup on price, the total profit is calculated as (1 + 0.20) * (1 + 0.10) - 1 = 1.32 - 1 = 32%.

AI explanation

Assume the cost price of 1 gram is 1 rupee, so the trader marks the 1 kilogram item up by 10 percent to a marked price of 1,100 rupees. Because his faulty scale shows 1,200 grams when selling a kilogram, the customer pays for 1,200 grams at the marked rate, resulting in a total selling price of 1,200 multiplied by 1.1, which equals 1,320 rupees. The trader's actual cost price for the 1,000 grams sold is 1,000 rupees, so his net profit is 1,320 minus 1,000, equaling 320 rupees. Using the profit percentage formula of (Profit divided by Cost Price) times 100, the calculation is (320 divided by 1,000) times 100, resulting in a 32 percent profit.

Keep practicing — related questions