A trader has a weighing balance that shows 1,200gm for a kilogram. He further marks up his cost price by 10%. Then the net profit percentage is A) 32% B) 23% C) 31.75% D) 23.5%
ANSWER
Verified
Hint: In the above type of question we will assume the cost price of one gram to be Rs. 1, then we will calculate the markup price. Then we will calculate the profit percentage using formula.
Complete step-by-step answer: Markup price is the price which is marked by the trader. Let us suppose the cost price of one gram to be Rs.1, then the mark up price =$1+\left( 1\times \dfrac{10}{100} \right)=Rs.1.1$ Now he sells 1000gm which seems to be 1200gm so he charges a customer \[1200\times 1.1=Rs.1320\]for 1000gm. As we know that profit % $=\dfrac{S.P-C.P}{C.P}\times 100$ where S.P is selling price and C.P is cost price. Now, selling price = Rs. 1320 and cost price = Rs. 1000. Thus, his profit % = \[\dfrac{1320-1000}{1000}\times 100=32%\]. Therefore, the correct option is option A.
Note: The amount paid to purchase an article or the price at which an article is made is known as its cost price. The price at which an article is sold is known as its selling price, the cost price is abbreviated as C.P and the selling price is abbreviated as S.P. If C.P > S.P then result will be loss and C.P < S.P then result will be profit.