Question

A dishonest dealer marks up the price of his goods by 20% and gives a discount of 10% to the customer. He also uses a 900-gram weight instead of a 1-kilogram weight. Find his percentage profit due to these maneuvers.

• A. 80%
• B. 12%
• C. 20%
• D. 16%

Answer 1

The correct option is C 20%

If you assume that his cost price is 1 Rs. per gram, his cost for 1000 grams would be Rs. 1000. For supposed 1 kg sale he would charge a price of 1080 (after an increase of 20% followed by a decrease of 10%). But, since he gives away only 900 grams the cost for him would be Rs. 900.
Thus he is buying at 900 and selling at 1080 - a profit percentage of 20%