Dishonest Dealers and Faulty Weights: Calculating Real Gain Percentage

Dealing with dishonest traders can be quite the challenge. Using faulty weights while claiming to sell goods at a certain profit can be one of the sneakiest tactics they might employ. To understand how their practices affect real gains, let's take a detailed look at a specific example.

Example 1: 30% Profit but 800 Grams Instead of a Kilogram

Consider a dishonest dealer who sells goods at a 30% profit but uses an 800-gram weight instead of a kilogram (1000 grams).

Calculations

Let the cost price (CP) of 1 kg (1000 grams) of goods be C.

Since the dealer claims a 30% profit, the selling price (SP) of 1 kg is calculated as: SP CP 30% of CP C 0.3C 1.3C

However, the dealer only uses 800 grams instead of 1000 grams.

The actual cost price (CP800) of 800 grams is: CP800 (800/1000) × C 0.8C

Real Gain Calculation

The dealer sells 800 grams for the price of 1 kg (1.3C). Profit when selling 800 grams: Profit SP - CP800 1.3C - 0.8C 0.5C

Real Gain percentage

The gain percentage is calculated based on the cost price of the amount sold (800 grams). The gain percentage is given by: Gain Percentage (Profit / CP800) × 100 Gain Percentage (0.5C / 0.8C) × 100 Simplifying this, we get: Gain Percentage (0.5 / 0.8) × 100 0.625 × 100 62.5%

Therefore, the real gain percentage of the dishonest dealer is 62.5%.

Example 2: 1 kg → 900 gm

Another scenario is when a dealer sells 1 kg of goods but gives only 900 grams.

Calculations

Assume the cost price (CP) of 1 kg of the article is Rs. x. Selling 900 grams at the price of 1 kg means the selling price (SP) is 0.9x/1kg × 900 grams 0.81x.

Profit and Loss Calculation

The profit percentage is given by:

Profit Percentage (SP - CP) / CP × 100 Profit Percentage (0.81x - 0.9x) / 0.9x × 100 Profit Percentage -0.1x / 0.9x × 100 Profit Percentage -11.11% (indicating a loss)

So, the dealer is making a loss of 11.11% on each transaction, which is misleading since he claims to be selling at the same price at which he buys the goods but uses a 900-gram weight instead of a kilogram.

Conclusion

The manipulation of weights in trade is a common fraudulent practice. Calculating the real gain percentage or loss percentage can help identify such dishonest practices. Understanding these tactics is crucial for both consumers and regulatory bodies to ensure fair trade and protect consumers.

References

Tianlong Services. (2023). 7 Types of Sales Fraud and How to Detect Them Wordpandit. (2023). Profit and Loss for CAT 2022: Dishonest Dealers and Faulty Weights Solved Dishonest Dealings MCQ [Free PDF] - Objective Question Answer for Dishonest Dealings Quiz - Download Now! Solved Dishonest Dealings MCQ [Free PDF] - Objective Question Answer for Dishonest Dealings Quiz - Download Now! Solved Dishonest Dealings MCQ [Free PDF] - Objective Question Answer for Dishonest Dealings Quiz - Download Now!