# CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss

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**CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss**

A shopkeeper gives a discount of 20% on cost price of tea, but uses a weight of 800 gm per kg. Find his net profit / loss percentage.

- (a)
no profit, no loss

- (b)
4.01

- (c)
3.97

- (d)
3.52

- (e)
None of these

Answer: Option A

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**Explanation** :

Due to wrong weight, he is making profit of 200/800×100=25%. But since he is giving a discount of 20%, so net profit/loss

= 25 – 20 + (25 × -20))/100 = 5 - 5 = 0

Hence, option (a).

Workspace:

**CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss**

A shopkeeper professes to sell his product at cost price but uses a weight of 800gm in case of a kg. Find his real profit%

- (a)
25%

- (b)
20%

- (c)
40%

- (d)
None of these

Answer: Option A

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**Explanation** :

% profit = 200/800 × 100 = 25%

Hence, option (a).

Workspace:

**CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss**

A shopkeeper who professes to sell his goods at cost price uses a 900 gm weight for a kg. His gain percentage is

- (a)
12

- (b)
15

- (c)
16.67

- (d)
20

- (e)
None of these

Answer: Option E

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**Explanation** :

Gain% = ((error))/((True value - error) ) × 100

Gain% = 100/900 × 100 = 11(1/9)%

Hence, option (e).

Workspace:

**CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss**

A dealer professes to sell his goods at cost price, but he uses a false weight and gains $11\frac{1}{9}$%. For a kg, he uses a weight of

- (a)
900 gms

- (b)
930 gms

- (c)
963 gms

- (d)
941 gms

- (e)
None of these

Answer: Option A

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**Explanation** :

If he uses a weight of x gm, then profit percentage = (1000 - x)/x × 100, which is equal to 11(1/9)%

Therefore, x = 900 gms.

Hence, option (a).

Workspace:

**CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss**

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?

- (a)
40%

- (b)
44%

- (c)
50%

- (d)
None of these

Answer: Option C

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**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 factor_{overall} = multiplication factor_{price} × multiplication factor_{quantity while buying} × multiplication factor_{quantity while selling}

⇒ multiplication factor_{overall} = 1 × 6/5 × 5/4 = 6/4 = 3/2

∴ % profit overall = !multiplication factor_{overall} - 1) × 100% = (3/2 - 1) × 100% = 50%

Hence, option (c).

Workspace:

**CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss**

A shopkeeper cheats while buying as well as while selling. while buying he pays for 20% less than what he takes 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?

- (a)
40%

- (b)
44%

- (c)
50%

- (d)
None of these

Workspace:

**CRE 3 - Dishonest Merchant | Arithmetic - Profit & Loss**

A shopkeeper cheats while buying as well as while selling. while buying he pays for 20% less than what he takes and while selling he charges for 20% more than what he gives. If his selling price per kg is 10% less than his cost price per kg, what is his (approximate) profit percentage?

- (a)
40%

- (b)
35%

- (c)
50%

- (d)
Cannot be determined

Answer: Option B

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**Explanation** :

A shopkeeper cheats while buying as well as while selling. while buying he pays for 20% less than what he takes and while selling he charges for 20% more than what he gives. If his selling price per kg is 10% less than his cost price per kg, what is his (approximate) profit percentage?

Given, his selling price per kg is 10% less than his cost price per kg

∴ Multiplication factor for price = 9/10

While buying if he takes 1000 gms, he pays for only 800 gms.

⇒ multiplication factor while buying = 1000/800 = 5/4

While selling if he gives 1000 gms, he charges for 1200 gms.

⇒ multiplication factor while selling = 1200/1000 = 6/5

∴ Overall multiplication factor for quantity = 5/4 × 6/5 = 3/2

⇒ Overall multiplication = 3/2 × 9/10 = 27/20 = 1.35

∴ % profit = (1.35 - 1) × 100% = 35%

Hence, option (b).

Workspace:

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