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.
- A25%
- B15%
- C20%
- D12%
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%
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%