A shopkeeper cheats while buying as well as while selling. While buying he takes 20% more than what he pays for and while selling he gives 20% less than what he charges for. If his selling price per kg is same as his cost price per kg, what is his profit percentage?
Explanation:
Buying: If he pays for 1000 gms he takes 1200 grams, hence multiplication factor while buying = 1200/1000 = 6/5
Selling: If he charges for 1000 gms he gives only 800 grams, hence multiplication factor while selling = 1000/800 = 5/4
Since selling price = cost price, multiplication factor for price = 1/1 = 1
∴ multiplication factoroverall = multiplication factorprice × multiplication factorquantity while buying × multiplication factorquantity while selling
⇒ multiplication factoroverall = 1 × 6/5 × 5/4 = 6/4 = 3/2
∴ % profit overall = !multiplication factoroverall - 1) × 100% = (3/2 - 1) × 100% = 50%
Hence, option (c).
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