Subject: General Aptitude · Chapter: Profit and Loss · Exam: · Marks: · Difficulty:
Instead of a metre scale, a cloth merchant uses a 120 cm scale while buying but uses an 80 cm scale while selling the same cloth. If he offers a discount of 20\% on cash payment what is his overall profit percentage?
(a)15\%
(b)20\%
(c)25\%
(d)40\%
Answer
Answer (as printed): B
Explanation
Let the actual C.P. of 1 m cloth be ₹ 1. Then, the merchant buys 120 cm cloth for ₹ 1 and sells 80 cm cloth at a discount of 20\% on ₹ 1. So, C.P. of 120 cm cloth $=₹ 1$$$\text { ⇒ C.P. of } 80 \mathrm{cm} \text { cloth }=₹\left(\frac{1}{120} \times 80\right)=₹ \frac{2}{3} .$$ S.P. of 80 cm cloth $=80 \%$ of $₹ 1=₹ \frac{4}{5}$. Profit $=₹\left(\frac{4}{5}-\frac{2}{3}\right)=₹ \frac{2}{15}$. ∴ Profit $\%=\left(\frac{2}{15} \times \frac{3}{2} \times 100\right) \%=20 \%$.