Question

A trader makes a profit of 20% on the whole even when his scale reads 15% less. What is his % mark-up, over and above cost Price?

Options

• `33  1/3%`

• 16.67%

• 41%

• 28%

Answer 1

41%

Explanation:

According to the question, a trader is giving more to a customer than for what he is charging because his scale is reading 15% less. That means when the trader is giving 100 units actually. his scale is showing only 85 units.

Let C.P. per unit = ₹ 1

CP for 100 units = ₹ 100 (Actual C.P.)

Actual Revenue earned = 100 + 20%  ...[∵ Actual Profit = 20%]

= ₹ 120 → [S.P. for 85 units according to trader]

C.P. for 85 units = ₹ 85 [Wrong C.P.]

According to trader he is selling 85 units for ₹ 120

Mark up % = `(120 - 85)/85 xx 100`

= 41.1%