A sold an article to B at a profit of 25%. B sold it to C at a profit of 15%. The profit made by B is ₹40 less than the profit made by A. What is the cost price (in ₹) of the article for A?
Answer & explanation
Correct answer: option 2
A sold an article to B at a profit of 25%.
B sold it to C at a profit of 15%.
The profit made by B is Rs. 40 less than the profit made by A.
Let A bought the article for Rs.100m
A sold it to B at = [100m + (100m × 25%)] = Rs.125m
Profit earned by A = (125m – 100m) = Rs. 25m
B bought the article for Rs. 125m
B sold it to C at [125m + (125m × 15%)] = 143.75m
Profit earned by B = (143.75m – 125m) = Rs. 18.75m
According to the question,
25m – 18.75m = 40
⇒ 6.25m = 40
⇒ m = 6.4
So, A bought the article for (100 × 6.4) = 640 Rs.