A retailer uses faulty balances to purchase and sell the goods He uses his faulty balances in such a way that while buying the goods from wholesaler he gets`20%` more of what he pays for, while selling his goods to his customer he gives `20%` less of what he charges for If he sells his goods at the cost price, how much profit percentage does he make?

Options

A. 50
B. 44
C. 41
D. 40

Answer

To solve the problem step by step, let's break down the retailer's purchasing and selling process:

### Step 1: Understanding the Purchase
The retailer claims to pay for 100% of the goods but actually receives 20% more due to the faulty balance.

- **Actual Goods Received** = 100% + 20% of 100% = 100% + 20% = 120%.

### Step 2: Understanding the Selling
When selling, the retailer charges for 100% of the goods but gives only 20% less due to the faulty balance.

- **Actual Goods Sold** = 100% - 20% of 100% = 100% - 20% = 80%.

### Step 3: Calculating Profit
Now, we need to determine the profit percentage. The retailer is selling 80% of the goods but has received 120% of the goods.

- **Profit Calculation**:
- Goods Received = 120%
- Goods Sold = 80%

The profit is the difference between the goods received and the goods sold:

\[ \text{Profit} = \text{Goods Received} - \text{Goods Sold} = 120\% - 80\% = 40\% \]

### Step 4: Profit Percentage Calculation
To find the profit percentage based on the cost price (which is considered as 100%):

\[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{\text{Cost Price}} \right) \times 100 = \left( \frac{40\%}{80\%} \right) \times 100 = 50\% \]

### Final Answer
The retailer makes a profit of **50%**.

---