A shopkeeper normally makes a profit of 20% in a certain transaction, he weight 900 grams instead of 1 Kg due to an error in weight machine. If he charges 20% less what he normally charges, what is his actual profit or loss percentage?

Question

Question

Answer 1

Calculation:

Let the cost price of 1 Kg of goods = Rs. 100

So, the selling price of 1 Kg of goods = 100 × 120/100 = Rs. 120

Cost price of 900 grams of goods = Rs. 90

According to question,

Shopkeeper charges 20% less what he normally charges

So, the new selling price = old selling price × (100 - 20)/100

⇒ New selling price = 120 × 80/100 =Rs. 96

So, profit = Rs. (96 - 90) = Rs. 6

So, profit % = (6/90) × 100

\(\therefore {\rm{P}}rofit\;\% = 6\frac{2}{3}\% \)