Multiple choice

A trader declares that he will sell his commodity at 10% profit over his cost price. However, he alters his weighing balance to sell 10% less to each customer. What is his true profit margin in percent?

  1. 10

  2. 22.22

  3. 20

  4. 33.33
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let cost price be 100 per unit. Selling price = 110. He sells 10% less, meaning he gives 0.9 units for the price of 1.1 units. Effective cost for 0.9 units is 90. Profit = 110 - 90 = 20. Profit percentage = (20 / 90) * 100 = 22.22 percent.

AI explanation

Let the cost price of 100 units be Rs. 100, so he claims to sell them for Rs. 110 to earn a 10% profit. By using a faulty balance, he actually gives only 90 units to the customer while charging the Rs. 110 selling price, meaning the cost price to the trader for those 90 units was only Rs. 90. His actual profit is 110 minus 90, which is Rs. 20, so his true profit margin is 20 divided by 90 multiplied by 100, equalling 22.22 percent.

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