A trader cheats both his supplier and customer by using

Question

A trader cheats both his supplier and customer by using faulty weights. When he buys from the supplier, he takes 10% more than the indicated weight. When he sells to his customer, he gives the customer a weight such that 10% of that is added to the weight, the weight claimed by the trader is obtained. If he charges the cost price of the weight that he claims, find his profit percentage.

A) 20%
B) 21%
C) 21.33%
D) 22.109%
E) 23%

A. 20%
B. 21%
C. 21.33%
D. 22.109%
E. 23%

KarishmaB · Accepted Answer

If no values are given in percentage questions, I always start with a 100.
Say he buys from his supplier. The indicated weight is 100 kg. He pays $100 for it (Rate - $1/kg). But because he is cheating, he gets 110 kg of material.
 His cost price for 110 kg is $100.

Then he sells to his customer at a rate of $1/kg.
He sells 100 kg but the weight shows that it is 110 kg. So the customer pays him $110.
Selling 100 kg gets him $110.
Selling 110 kg will get him $110/100 * 110 = $121
 His selling price for 110 kg is $121.

Profit% = 21%

kuttingchai · Answer

Trader buys actual 100 kg + 10% cheated = 110 kg 
Trader sells 110 kg + 10% added weight = 121 kg

Rate of purchase 1kg = 2 /-

So he buys 110kg (100kg * 2) = 200/- 
he sells 121 kg (121 * 2) = 242/-

Profit earned 242-200 = 42/-

%Profit = 42 / 200 *100 = 21%

agdimple333 · Answer

B.

Lets say the indicated weight is x for $10
but the trader actually get 1.1x for $10
now he tells to the customer that its 1.1(1.1x) = 1.21x and charges the price accordingly i.e. 1.21x * 10/ x = 12.1

so profit % = (12.1-10)/ 10 = 0.21 = 21%

manishgeorge · Answer

I think the answer is D. Below is my rationale;

Say X is the cost Price and Selling price

The person Buys 1.1 of 1's price( X price). There for, cost price becomes 10X/11

He sells .91 for 1's price. His selling price becomes ~ 10X/9

profit = SP - CP
10X/9 - 10X/11 = 20X/90

Profit % = (20X/99) * (11/10X)

2/9 * 100 ~ 22.22

Spidy001 · Answer

Good Question.

lets say actual rate is for weight 'w' is $x

we know the trader cheated and got 10% more weight 
 i.e the trader paid $x and got (110/100)w

then the trader cheated customer by selling the product as if its 10% heavier than it actually is 
 i.e the trader sold (110/100)w saying its (110/100)(110/100)w
 which means the trader charged the customer with $(121/100)x

=> profit % =  (((121/100)x - x)/x)*100

= 21 %

Answer is B

cleetus · Answer

Thanks Karishma.. Explained well as usual :-)

dhirajdas53 · Answer

Let consider the person buys 100 Kg. In that case he cheats and take 110Kg .

Now 110 KG he sells telling the weight to be 10 % more. i.e 110 + 11 = 121 kg.

Thus, 100 kg goods he sells as 121 kg goods. Therefore profit = 21 %

-------------------

jlgdr · Answer

Its a good question but there's something weird on the wording of the second sentence. We need to make it clear for next time Anyways, one can infer that he 'steals' 10% from suppliers and then charges 10% extra to customers So basically 1.1 * 1.1 = 1.21 Given that 1 is start point, we get 21% more Hence answer is B Cheers! J

AMahmoodi · Answer

here my solution:

A trader cheats both his supplier and customer by using faulty weights. When he buys from the supplier, he takes 10% more than the indicated weight. When he sells to his customer, he gives the customer a weight such that 10% of that is added to the weight, the weight claimed by the trader is obtained. If he charges the cost price of the weight that he claims, find his profit percentage.

A) 20%
B) 21%
C) 21.33%
D) 22.109%
E) 23%

assume it buys a 100 kg from its supplier for $100 ($1 for each Kg) and takes 110 kg by cheating.

it sells 110 kg by cheating for 1.1(110)=121 kg for the price of $121.

profit=$121-$100=$21 & to find the percentage divide by $100 that he paid at first to get 21%.

have fun.

testcracker · Answer

hi both of the times the mark up can be seen as 10% so, 10 + 10 + 100/100 21% thanks

NinetyFour · Answer

Had some trouble understanding  he gives the customer a weight such that 10% of that is added to the weight, the weight claimed by the trader is obtained. , but I figured that means he charges the customer 10% extra weight when he in fact did not give them 10% more supply.

Hypothetically if we purchase $100 worth of cloth we are supposed to get 100 grams back. But since this trader takes 10% extra he gets 110 grams back. His purchase cost is $10/11grams.

Now our selling price would hypothetically be $1 per 1grams. But since the trader is lying, when a customer comes in a purchases 1 gram, he is only getting 0.9 grams back in return, this means our revenue to us is $1.1 per 1 gram.

We can calculate our profit percentage and get 21%

NTA · Answer

"When he sells to his customer, he gives the customer a weight such that 10% of that is added to the weight, the weight claimed by the trader is obtained." can anyone please explain this line? I don't get it!

ymer · Answer

What we are looking for is the real Margin:
Price = Cost * Margin

What we now is that:

Price = Suposed Cost * 1.1 (1)

and

Suposed cost = Cost * 1.1 (2)

(i.e. : the real cost is 100, but since he stole 10%, the suposed cost by him is 110)

Evaluating (2) in (1)

Price = (Cost * 1.1) * 1.1
--> 10% of 1.1 is 0.11 --> 1.1 * (1 + 0.11) --> 1.21
Price = Cost * 1.21

Price = Cost * 1.21
Price = Cost * Margin

Margin -- > 21%

adewale223 · Answer

Let the original weight he is supposed to buy be x.

If he cheats his supplier by 10% he gets a total weight of 1.1x

If he cheats customers by 10% he will get additional 0.1 on 1.1 to give 0.11

1.1x + 0.11x = 1.21x

If he sells for cost price, his profit will be

1.21x - x/x multiplied by 100.

0.21 X 100

21%.

Answer choice B.

Posted from my mobile device

RudreshKal · Answer

KarishmaB  - Your views on this que and below will be much appreciated.

There is a similar question below

A shop owner professes to sell his articles at certain cost price but he uses false weights with which he cheats by 10% while buying and by 10% while selling. What is his percentage profit?

A. 10.22%
B. 20.22%
C. 21.22%
D. 22.22%
E. Can't be calculated

I guess we are asked to get the percentage profit from cheating.

The owner buys 100kg but actually gets 110kg;
The owner sells 100kg but actually gives 90kg;

Profit: (110-90)/90*100=~22.22%

Answer: D.

Why are the two answers different when the questions are on similar lines. Almost everyone in question i have mentioned given ans D to fit the narrative but there is certain ambiguity in both these questions related to CP. CP while buying and selling are taken different and thus answers are varying the way you interpret the question.

KarishmaB · Answer

None of these questions are official hence don't worry. An official question will clearly mention what to take as CP etc. As long as you know how to solve depending on what to take as the cost price, it's fine.

bumpbot · Answer

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

A trader cheats both his supplier and customer by using

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

A trader cheats both his supplier and customer by using

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards