Marked profit plus short weight — combined effect on gain A trader sells wheat at a marked 20% profit but uses a weight that is 20% less than the true measure (delivers only 0.8 kg for each 1 kg claimed). What is his overall gain percentage?

Introduction / Context:
Short-weight malpractice amplifies profit beyond the price markup. We combine the price factor with the weight factor to get the true gain relative to cost.

Given Data / Assumptions:

• Price markup: +20% on CP ⇒ price factor = 1.20.
• Delivered weight factor: 0.80 of claimed.
• Uniform CP per true kg.

Concept / Approach:
Let CP per true kg = 100. Revenue per claimed kg at +20% = 120. Actual cost for 0.80 kg delivered = 0.80 * 100 = 80. True gain% = (120 − 80) / 80 * 100.

Step-by-Step Solution:
Revenue per claimed kg = 120.Actual cost incurred = 80.Profit = 40 ⇒ Profit% = 40/80 * 100 = 50%.

Verification / Alternative check:
Combined factor view: effective multiplier on cost = 1.20 / 0.80 = 1.50 ⇒ 50% gain. Same result.

Why Other Options Are Wrong:
35%, 38%, and 48% underestimate the combined effect; 60% overshoots.

Common Pitfalls:
Adding percentages arithmetically instead of using multiplicative factors, or forgetting the weight reduction effect.

Final Answer:
50%