# CAT 1996 | Question: 142

1,595 views

Instead of a metre scale, a cloth merchant uses a $120$ cm scale while buying, but uses an 80 cm scale while selling the same cloth. If he offers a discount of $20$ percent on cash payment, what is his overall percent profit?

1. $20$%
2. $25$%
3. $40$%
4. $15$%

Let the price of 100 cm of cloth be Rs 100. But he gets 120 cm of cloth for Rs 100.

Hence actual cost for 1 cm = 100/120 = Rs 5/6

Now instead  of selling 100 cm, by cheating, he sells 80 cm of cloth for the cost price of 100 cm of cloth.

To calculate profit, cost price of 80 cm of cloth = 80 * (5/6) = Rs 200/3

Selling price of 80 cm of cloth (actually 100 cm for the buyers)  at a discount of 20 % = 100*0.8 = Rs 80

Profit = $\frac{80- \frac{200}{3}}{\frac{200}{3}} = \frac{40}{200} = 20 \%$.

Option A is the Correct Answer.

## Related questions

1
2,167 views
A watch dealer incurs an expense of Rs $150$ for producing every watch. He also incurs an additional expenditure of Rs. $30,000$, which is independent of the number of wa...
2
1,483 views
The cost of a diamond varies directly as the square of its weight. Once, this diamond broke into four pieces with weights in the ratio $1 : 2 : 3 : 4$. When the pieces we...
3
9,877 views
A salesman enters the quantity sold and the price into the computer. Both the numbers are two-digit numbers. Once, by mistake, both the numbers were entered with their di...
4
758 views
A salesman enters the quantity sold and the price into the computer. Both the numbers are two-digit numbers. Once, by mistake, both the numbers were entered with their di...
The price of a Maruti car rises by $30$% while the sales of the car came down by $20$%. What is the percent change in the total revenue?$–4$ $–2$ $+4$ $0$