Sudhir claimed to sell his items at only 8% above the cost of production, but used a weight that had 750 grams written on it, though it actually weighed 720 grams. What was the actual profit percentage earned by Sudhir?
Answer & explanation
Correct answer: option 3
Markup = 8%
Less weight = 720 instead of 750
CP SP
Markup 25 27
Weight 24 25
——————————————
600 675
Profit = 675 - 600 = 75
Profit % = 75 × \(\frac{100}{600}\) = 12.5%