Short-supply pricing at a fuel outlet: the operator gives 5% less petrol by volume but charges at the listed cost price per litre. Compute his effective profit percentage due to short delivery.

Difficulty: Easy

Correct Answer: 5.26%

Explanation:


Introduction:
When quantity delivered is short but the customer pays the full tagged price per litre, the seller earns an implicit profit. The effective price per actual litre increases because less product is delivered for the same money.


Given Data / Assumptions:

  • Short delivery = 5% (customer receives 0.95 L when billed for 1 L).
  • Charge remains at the cost price per 1 L (no visible markup).


Concept / Approach:
Effective price per actual litre = billed price / actual volume delivered. Profit% = (effective price − cost price)/cost price * 100.


Step-by-Step Solution:
Let listed cost price per litre = 1 (unit money)Actual volume delivered for 1 billed litre = 0.95 LEffective price per actual litre = 1 / 0.95 = 1.052631...Profit% = (1.052631... − 1) * 100 ≈ 5.263% ≈ 5.26%


Verification / Alternative check:
If cost is Rs 100 per litre billed, delivering 0.95 L means the customer effectively pays Rs 105.263 per actual litre, implying 5.263% profit over cost.


Why Other Options Are Wrong:

  • 5% / 4.78% / 5.6%: rounding or base mistakes; the exact fraction from 1/0.95 is ≈ 5.26%.


Common Pitfalls:

  • Subtracting 5% directly instead of adjusting for the new base (actual litre delivered).


Final Answer:
5.26%

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