PROFIT AND LOSS QUESTION DOUBT

Question

A merchant purchases rice at ₹100 per kg and receives 10 kg free for every 100 kg purchased. He sells the same rice at ₹110 per kg, but cheats his customers by giving 90 kg of rice for every 100 kg of rice purchased by the customers. If the merchant provides a 10% discount, the resulting profit % earned by him is:

A
0.15

B
0.18

0.21

0.24 Hey ,I'am not able to understand how the answer is 0.21 can anybody help me with this?

A
0.15

B
0.18

0.21

0.24                                                                                                                                                                                                                                                                                           Hey  ,I'am not able to understand how the answer is 0.21 can anybody help me with this?

Varun · Accepted Answer

Assume shopkeeper & customer purchases 100kg after reading whole qn!

So cost/buying price will be 10,000rs for shopkeeper.
But he receives 110kg
So his actual cost/buying price is (10,000/110)rs per kg =90.9rs/kg

Now a customer comes to his shop to buy 100kg rice.
Shopkeeper packs only 90kg but charges for 100kg at 110rs/kg. Therefore receives 11,000rs. But offers a 10% discount on 11,000 = 9,900rs.
Now, Selling price per kg is (9,900/90)=110rs/kg.

Now you have SP & CP for a kilo of rice.
Put it in profit percent formula [(SP-CP)/CP]; avoiding miltiplying with 100 bcz options are not truly in percentage!

[(110-90.9)/90.9]=0.21

PROFIT AND LOSS QUESTION DOUBT

1 Answer