Markup, discount, and short-weighing — A trader marks goods up by 80% over cost and then offers a 25% discount on the marked price. In addition, he delivers 10% less quantity than charged (short-weighing). What is his net profit percentage on cost?

Difficulty: Easy

Correct Answer: 50%

Explanation:


Introduction / Context:
Combining markup and discount changes the selling price per nominal unit, while short-weighing changes the delivered quantity for that price. Converting all effects into a price per true unit versus cost per true unit gives the net profit percentage cleanly.


Given Data / Assumptions:

  • MP = 1.80 * CP (80% markup).
  • Offered discount = 25% ⇒ SP per nominal unit = 0.75 * MP.
  • Delivered quantity per nominal unit = 0.90 (10% short-weigh).


Concept / Approach:
Compute SP per true unit by dividing price per nominal unit by the delivered fraction. Then compare to CP per true unit (which is simply CP) to obtain profit% = (SP_true − CP)/CP * 100.


Step-by-Step Solution:

SP per nominal unit = 0.75 * 1.80 * CP = 1.35 * CP.Delivered fraction = 0.90 ⇒ SP per true unit = 1.35/0.90 * CP = 1.50 * CP.Profit% = (1.50 − 1.00) * 100 = 50%.


Verification / Alternative check:
For CP = ₹ 100 per true kg, nominal customer bill per “kg” is ₹ 135 but receives only 0.9 kg ⇒ ₹ 150 per true kg, matching 50% profit.


Why Other Options Are Wrong:
35%, 40%, 45%, and 55% do not reflect the compounded effect of markup, discount, and short-weighing.


Common Pitfalls:
Applying 25% discount to cost instead of to the marked price, or ignoring the short-weigh factor when converting to true per-unit revenue.


Final Answer:
50%

More Questions from Profit and Loss

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion