Step 1: Understanding the Problem
This is a classic "false weight" problem. The shopkeeper claims to sell at the cost price (CP), which means his profit comes from cheating on the weight. He charges the customer for 1 kg (1000 gms) but only gives them 900 gms.
Step 2: Key Formula or Approach
In false weight problems, the gain percentage is calculated on the actual amount of goods sold (the true weight used).
Let's assume the cost price of 1 gm of goods is 1 rupee.
The shopkeeper's Cost Price (CP) = Cost of the goods he actually gives = Cost of 900 gms = 900 rupees.
The shopkeeper's Selling Price (SP) = Price he charges the customer = Price of 1000 gms = 1000 rupees.
The gain percentage formula is:
\[ \text{Gain %} = \frac{\text{SP} - \text{CP}}{\text{CP}} \times 100% \]
A shortcut formula for this specific case is:
\[ \text{Gain %} = \frac{\text{Error}}{\text{True Value} - \text{Error}} \times 100% = \frac{\text{Error}}{\text{False Weight}} \times 100% \]
Step 3: Detailed Explanation
Method 1: Using CP and SP
CP = 900 (cost of what he gives)
SP = 1000 (what he charges for)
Gain = SP - CP = 1000 - 900 = 100
\[ \text{Gain %} = \frac{\text{Gain}}{\text{CP}} \times 100% = \frac{100}{900} \times 100% = \frac{1}{9} \times 100% = 11.11...% \]
To convert this to a mixed fraction, we divide 100 by 9.
100 \(\div\) 9 = 11 with a remainder of 1.
So, the percentage is \( 11 \frac{1}{9}% \).
Method 2: Using the Shortcut Formula
True Value = 1000 gms
False Weight = 900 gms
Error = True Value - False Weight = 1000 - 900 = 100 gms
\[ \text{Gain %} = \frac{\text{Error}}{\text{False Weight}} \times 100% = \frac{100}{900} \times 100% = \frac{1}{9} \times 100% = 11 \frac{1}{9}% \]
Step 4: Final Answer
The shop owner's gain is \( 11 \frac{1}{9}% \). Therefore, option (A) is the correct answer.