A trader finds that the net profit he has made, inspite of h : GMAT Problem Solving (PS)
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# A trader finds that the net profit he has made, inspite of h

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Intern
Joined: 21 Sep 2011
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23 Sep 2011, 09:31
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I am posting one question and seems to be of good quality...

A trader finds that the net profit he has made, inspite of his spring balance reading 10% less than the actual weight, is 20%. What is the markup on the cost price?
Intern
Status: Mission MBA
Joined: 02 Jul 2010
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Schools: ISB, IIMs
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Kudos [?]: 14 [0], given: 5

Re: profit and loss question - complex level [#permalink]

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23 Sep 2011, 20:09
jrymbei wrote:
I am posting one question and seems to be of good quality...

A trader finds that the net profit he has made, inspite of his spring balance reading 10% less than the actual weight, is 20%. What is the markup on the cost price??

Lets assume the total cost of 1 unit of an item: $100 Since the spring shows 10% less: so the measured value of an item will be 0.9 instead of 1 unit. So, the trader will charge$90

And as given in the problem statement 90 = 1.2* x (where x is the cost price of unit)
x= 75

Target selling price = cost price + markup
markup= 100-75 =$25 markup % = 25/75 = 33.33% Cheers!!!!!!! Intern Joined: 21 Sep 2011 Posts: 28 Followers: 0 Kudos [?]: 21 [0], given: 20 Re: profit and loss question - complex level [#permalink] ### Show Tags 23 Sep 2011, 20:24 Good explanation and the answer is correct. Manager Joined: 14 Mar 2011 Posts: 203 Followers: 6 Kudos [?]: 118 [0], given: 21 Re: profit and loss question - complex level [#permalink] ### Show Tags 23 Sep 2011, 20:36 Let the the cost price of 1 kg of item be$ 1. Now when trader sells 1 kg, he actually sells more than 1 kg . let he actually sell x kg. According to question (x - 10/100 *x)=1 so x =10/9 kg. A/q he sells 10/9 instead of 1 kg . and on this 10/9 kg he gets profit of 20%. 120% of 10/9 =1.33 $. This mark-up price pertains to translation that was made on 1kg item @ 1$. so mark-up price = 33.33%
Re: profit and loss question - complex level   [#permalink] 23 Sep 2011, 20:36
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