Clarification on Profit / Loss

[sundeep.sn]

Dear Sir / Madam,

I am trying to solve the below question and, I seem to be confused. Please can somebody assist me in this?

Q: A dishonest shopkeeper professes that he is giving 1kg instead of 850gms. He sells the article at cost price. What will be his profit/loss percentage?

shopkeeper buys 850gms --- (1)
shopkeeper sells 1000gms --- (2)

Therefore, hypthetically he incurs a loss of 150gms. (However, in reality he does not incur any loss as the question says that he is dishonest)

Now,
per gm c.p = x/850 --- from (1)
per gm s.p = x/1000 --- from (2)

Since c.p > s.p
loss % = ((x/850 - x/1000)/(x/850)) * 100
= ((150x/850000)/(x/850)) * 100
= (150/1000) * 100
= 15

Therefore, he professes that he incurs a 15% loss

Is my understanding correct? Have I understood the question correctly. Please advise

Cheers,
Sundeep

[tim]

unfortunately we can't give you any help on this question, because the question itself is flawed in a way that you won't see on the GMAT. please understand that using practice questions from dubious sources can actually hurt your performance, and be careful which problem sources you use..