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Profit = Price - Cost <=> 40 = 100 - 60

If the seller gives more cloth for the same price, he misses some money which is the bonus cloth proportionnaly to the price he bought it

He bought the cloth 60 per meter, so x being the proportion of cloth he gives too much, we get

39 = 100 - 60x

That means that his profit becomes only 39 after he gave x time too much cloth that he bought previously for 60.

x = 61 / 60 ~= 1.017

That means he gaves 1.017 * the length of cloth he sells usually (1 meter) so the answer is the wrong scale is 1.017

This is what I always said, no??