IIFT 2020 Question 5

Question 5

A fruit seller in a locality uses dishonest practice as follows:
(i) He cheats on weight by 10 percent for every 1kg weight.
(ii) He pushes up the price of fruit by 15 percent and then gives a discount of 8 percent to the buyers for every kg sold.
Find the percentage profit of the fruit seller from sale of 1kg. (Profit is defined as Revenue - Cost)

Solution

Let the cost of fruit be Rs. 100 for 1000gm.

The fruit seller marks the price by 15% and then gives a discount of 8%. Thus, the selling price of fruit = Rs. 105.8

The fruit seller also cheats the customers by 10% of the weight. Thus, he sells 900gm for Rs. 105.8

Cost Price = $$\frac{100}{1}=Rs. 100/kg$$

Selling price = $$\frac{105.8}{0.9}=Rs. 117.56%$$

Percentage profit = $$\frac{117.56-100}{100}\times100=17.56\%$$

hence, the answer is option B.



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