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A dishonest dealer claims to sell a product at its cost pric

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b2bt
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A dishonest dealer claims to sell a product at its cost pric [#permalink] New post   01 Oct 2013, 01:39
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Question Stats:

25% (02:07) correct 75% (02:21) wrong based on 65 sessions
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A dishonest dealer claims to sell a product at its cost price. He uses a counterfeit weight which is 20% less than the real weight. Further greed overtook him and he added 20% impurities to the product. Find the net profit percentage of the dealer?

A. 44%
B. 40%
C. 50%
D. 56.25%
E. 36%

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I feel the OA is incorrect I was getting 56.25% as both the profits should be successive (that's what I feel 25% profit by each cheating)


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Re: A dishonest dealer claims to sell a product at its cost pric [#permalink] New post   01 Oct 2013, 02:35
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Let the weight of the product be 100kgs and the price $100.. So cost price is $1/kg

Now by using a counterfeight weight the dealer is selling 80kgs for $100

He then adds 20% impurities to it which is equivalent to adding 20% on selling price => $120

So now the price per kg is 120/80 = $1.5

And hence a profit margin of 50%.. C
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Re: A dishonest dealer claims to sell a product at its cost pric [#permalink] New post   03 Sep 2015, 03:02
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Hi,

Can someone please tell me how to arrive at the answer? I'm repeatedly getting 56.25.

My approach,
Say the CP is C For 1kg.
Now if he is using a tainted weight then the SP would be C for 0.8 kg.
He again adds 20% impurities. So 20% if 0.8 = 0.16 kg. (0.8 - 0.16) = 0.64 kg which he sells for C. From this we can say the SP of 1kg as 100C/64
(SP-CP/CP) *100 we get 56.25 %

Would be great if you could tell me what is wrong with my method and solve it on similar terms.
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Re: A dishonest dealer claims to sell a product at its cost pric [#permalink] New post   03 Sep 2015, 11:02
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b2bt wrote:
A dishonest dealer claims to sell a product at its cost price. He uses a counterfeit weight which is 20% less than the real weight. Further greed overtook him and he added 20% impurities to the product. Find the net profit percentage of the dealer?

A. 44%
B. 40%
C. 50%
D. 56.25%
E. 36%

Show Spoiler
I feel the OA is incorrect I was getting 56.25% as both the profits should be successive (that's what I feel 25% profit by each cheating)



The dealer uses weight which is 20% less than the real weight. or (1- 1/5) or 4/5 of real weight.
It means that he is selling $4 worth of product for $5.

The dealer then further added 20% impurities to the product.
It means that he is selling $5 worth of product for $6.

So his profit is $6-$4 = $2
and his profit percent is
(2/4)*100 = 50%

Answer:- C

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Re: A dishonest dealer claims to sell a product at its cost pric [#permalink]
03 Sep 2015, 11:02
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