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A balance of a trader weighs 20% less than it should be. Still the trader markup his goods to get the overall profit of 35%. What is markup on the cost price?
Options:
7
8
9
8.5
- The trader's balance weighs 20% less, so when "1 kg" is sold, only 0.8 kg is actually given.
- The trader marks up goods but uses this faulty balance to gain extra profit.
- Let cost price (CP) of 1 kg = ?100.
- Marked price = ?x (to be found). Sells at marked price.
- Sells 0.8 kg, but gets paid for 1 kg (as per scale).
- Effective selling price per kg = Marked price.
- Real cost for 0.8 kg = 0.8 × ?100 = ?80.
- Profit = Selling Price (for 0.8 kg) - Cost (for 0.8 kg) = x - 80.
- Overall profit = 35% ? (x - 80)/80 = 0.35 ? x - 80 = 28 ? x = ?108.
- Markup = (Marked Price - Cost Price) / Cost Price × 100 = (108-100)/100 × 100 = 8%
- Correct option: Option:2, 8
By: Kamal Kashyap ProfileResourcesReport error
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