Question

A trader marks up the price of goods he sells by 50% and gives a discount of 20%. Besides this, he also weighs the goods by 20% less. What is the net profit he gets?
1. 20%
2. 25%
3. 40%
4. 50%

Answer 1

Correct Answer - Option 4 : 50%

Given:

Discount, (D) = 20%

Formula used:

Selling price = Marked price × (100 – D%)/100

Profit = SP – CP

Profit % = (Profit/CP) × 100

Successive profit = P₁ + P₂ + (P₁P₂)/100

Here, P₁ and P₂ is profit

Calculation:

Let the cost price of the goods be 100x

Then, MP = CP + 50% of CP

⇒ 100x + 50x = 150x

Now, Selling price = Marked price × (100 – D%)/100

⇒ 150x × (100 – 20)/100 = 120x

Profit = SP – CP

⇒ 120x – 100x = 20x

Profit % = (20x/100x) × 100 = 20%

When the trader weights the goods 20% less then it means, instead of 1000 gram trade weights 800 grams

Trader earns profit of 200 grams in 800 grams then the profit % is

Profit % = (200/800) × 100 = 25%

Overall profit = 20 + 25 + (20 × 25)/100 = 50%

∴ The net profit earned by the trader is 50%