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A dishonest dealer professes to sell his goods at a profit of 20% on his cost price. However, to attract customers, he offers a discount of 10% on the marked price. Moreover, he uses a faulty weighing balance such that for every kilogram he claims to sell, he actually delivers only 800 grams. Calculate his overall profit percentage in the transaction. A) 35% B) 29.6% C) 8% D) 25%
The correct answer is Option A. Let's assume the Cost Price (CP) of the goods for the dealer is $\$1$ per gram. Therefore, the cost price of 1 kilogram (1000 grams) of goods is $\$1000$. Step 1: Calculate the actual cost for the quantity delivered. For every kilogram (1000 grams) he claims to sell, the dealer actually delivers only 800 grams. So, the actual cost to the dealer for the quantity delivered is $800 \text{ grams} \times \$1/\text{gram} = \$800$. Step 2: Calculate the Marked Price (MP). The dealer marks up his goods by 20% on his cost price. This mark-up is based on the standard 1 kg price. $ ext{MP} = \text{CP per kg} \times (1 + \frac{\text{Mark-up Percentage}}{100})$ $ ext{MP} = \$1000 \times (1 + \frac{20}{100}) = \$1000 \times 1.2 = \$1200$. Step 3: Calculate the Selling Price (SP) after discount. He offers a discount of 10% on the marked price. $ ext{SP} = \text{MP} \times (1 - \frac{\text{Discount Percentage}}{100})$ $ ext{SP} = \$1200 \times (1 - \frac{10}{100}) = \$1200 \times 0.9 = \$1080$. Step 4: Calculate the overall profit. The dealer receives $\$1080$ for a transaction where his actual cost for the goods delivered was $\$800$. $ ext{Profit} = \text{SP} - \text{Actual Cost} = \$1080 - \$800 = \$280$. Step 5: Calculate the overall profit percentage. Profit percentage is calculated with respect to the actual cost of the goods delivered. $ ext{Profit Percentage} = \frac{\text{Profit}}{\text{Actual Cost}} \times 100$ $ ext{Profit Percentage} = \frac{\$280}{\$800} \times 100 = \frac{28}{80} \times 100 = \frac{7}{20} \times 100 = 7 \times 5 = 35\%$. Thus, the dealer's overall profit percentage is 35%.
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