A grocery shop owner usually makes a profit of 20% in a certain transaction. If he charges 20% less than what he usually charges and he used 900 gm weight instead of 1 kg. What is his actual profit or loss percentage?

A grocery shop owner usually makes a profit of 20% in a certain transaction. If he charges 20% less than what he usually charges and he used 900 gm weight instead of 1 kg. What is his actual profit or loss percentage? Correct Answer (20/3)%

Given:

A grocery shop owner usually makes a profit of 20% in a certain transaction.

Formula used:

SP = CP × (100 + P%)/100

Profit% = (P/CP) × 100

SP = MP × (100 - D)/100

Where,

CP  → cost price

MP  → marked price

P → Profit 

D  → Discount

SP  → selling price

Calculations:

Let the cost of 1 kg of goods be Rs. 100 but shopkeeper charges Rs. 120 to the customer.

But now shopkeeper is giving only 900 grams to a customer that cost him at Rs. 90.

But he gives 20% discount on his previous selling price = (80/100) × 120 = Rs. 96.

Profit = 96 - 90 = 6 

Profit % = (6/90)×100 = (20/3)%

∴ His actual profit percentage is (20/3)%.