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?

640

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.