Difficulty: Medium
Correct Answer: 2.3 percent gain
Explanation:
Introduction / Context:
This problem involves comparing two selling prices for the same commodity and understanding how a change in selling price affects the profit or loss percentage. Here the commodity is almonds sold per kilogram. First the shopkeeper sells at a loss, then increases the selling price and wants to know the new profit or loss percentage. This tests comfort with backward calculation of cost price from a given loss percentage and forward calculation of new profit percentage.
Given Data / Assumptions:
Concept / Approach:
Loss percentage is calculated as (CP - SP) / CP * 100. If we know SP and loss percentage, we can reconstruct CP. Once CP is known, any new selling price can be used to find profit or loss percentage using (SP - CP) / CP * 100. In this question, because the new selling price is slightly above the reconstructed cost price, we expect a small profit instead of a loss.
Step-by-Step Solution:
Step 1: Let CP be the cost price per kilogram.Step 2: Given that a sale at Rs 1250 causes a 7% loss, we have SP1 = 93% of CP.Step 3: So, 1250 = 0.93 * CP.Step 4: Therefore CP = 1250 / 0.93 ≈ 1344.086.Step 5: Now consider the new selling price SP2 = Rs 1375.Step 6: Profit at SP2 = SP2 - CP ≈ 1375 - 1344.086 ≈ 30.914.Step 7: Profit percentage = (Profit / CP) * 100 ≈ (30.914 / 1344.086) * 100.Step 8: This is approximately 2.3% profit.
Verification / Alternative check:
We can validate the logic by a quick approximate check. If CP is roughly Rs 1344, then a selling price of Rs 1250 is about Rs 94 below cost. The fraction 94 / 1344 is about 7%, so the loss percentage condition is reasonable. Similarly, Rs 1375 is about Rs 31 above cost, and 31 / 1344 is roughly 2.3%. These quick mental checks confirm that our detailed calculations are on the right track and that the new selling price yields a small profit instead of a loss.
Why Other Options Are Wrong:
Option A (4.6 percent gain) roughly doubles the true profit percentage and does not match the computation. Option B (2.3 percent loss) has the correct magnitude but the wrong direction, since SP2 is greater than CP and cannot lead to a loss. Option D (4.6 percent loss) is far from the correct result and also wrong in sign. Only option C, a 2.3 percent gain, matches the calculated profit percentage.
Common Pitfalls:
One common mistake is to assume that a small increase in selling price from 1250 to 1375 automatically converts the 7% loss directly into a large profit, without computing the exact cost price. Another pitfall is forgetting that the loss percentage is based on cost price, not selling price. Students may also round too aggressively and end up choosing a nearby but incorrect option. Accurate use of percentage formulas and careful arithmetic avoid these errors.
Final Answer:
At the selling price of Rs 1375 per kilogram, the shopkeeper makes a 2.3 percent gain on almonds.
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