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A businessman marks up the price of his goods by 25% and gives a discount of 5% to the customer. He also uses a 950gm weight instead of a 1000gm weight. Find his overall profit percentage.

  1. A
    25%
  2. B
    15%
  3. C
    20%
  4. D
    12%

Solution & Step-by-step Explanation

Let the cost price (CP) of 1000gm of goods be Rs. 1000. Thus, CP of 1gm= Rs. 1.
Markup and Discount Effect:

Marked Price (MP) = Rs. 1000×1.25=Rs. 1250

Selling Price (SP charged to customer) = Rs. 1250×0.95=Rs. 1187.5

Weight Fraud Effect:

The dealer actually gives only 950gm to the customer.

Real Cost Price of goods given = 950×1= Rs. 950.

Overall Profit:

Profit=SP−Real CP=1187.5−950=237.5
Profit Percentage=(
950
237.5

)×100=25%

Practice this question

Try it yourself before checking the explanation above.

A businessman marks up the price of his goods by 25% and gives a discount of 5% to the customer. He also uses a 950gm weight instead of a 1000gm weight. Find his overall profit percentage.
A
25%
B
15%
C
20%
D
12%

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