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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?
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Instead of a metre scale, a cloth merchant uses a faulty 120 cm scale ...


Calculation of Overall Profit Percentage

Given:

  • The cloth merchant uses a faulty 120 cm scale while buying
  • The cloth merchant uses a faulty 80 cm scale while selling
  • A discount of 20% is offered


Calculating the Actual Length of Cloth Bought and Sold:

The actual length of cloth bought = 120 cm

The actual length of cloth sold = 80 cm

Calculating the Discounted Price:

Let the cost price of 1 cm of cloth be Rs. 1

Discounted price while selling = Rs. 0.80 (after 20% discount)

Calculating the Profit Percentage:

Profit percentage = ((Selling Price - Cost Price) / Cost Price) * 100

Profit percentage = ((80 * 0.80 - 120) / 120) * 100 = -20%

Explanation:

The negative profit percentage indicates that the cloth merchant is actually incurring a loss of 20% by using faulty scales and offering a 20% discount.

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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?
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