CAT 1996 Question Paper Question 12

Question 12

Instead of a metre scale, a cloth merchant uses a faulty 120 cm scale while buying, but uses a faulty 80 cm scale while selling the same cloth. If he offers a discount of 20%, what is his overall profit percentage?


Let's say the cost of the cloth is x rs per metre. Because of the faulty meter, he is paying x for 120 cms when buying. 


So cost of 100 cms = 100x/120.

He is selling 80 cms for x, so selling price of 100cms of cloth is 100x/80. 

discount = 20% 

so the effective selling price is .8*100x/80= x

profit = SP-CP= x - 100x/120 = x/6 

Profit % = x/6 divided by 100x/120 = 20%

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