A sells an item at 20% profit to B, B sells the same at 10% profit to C and receives ₹1,32,000.0. Had C purchased the same item from A, he would have spent 5% less than what he spent with B. What profit would A have made then?
Answer & explanation
Correct answer: option 1
According to the question,
Cost price fot B = 1,32,000 × \(\frac{100}{110}\) = 1,20,000
Cost price for A = 1,20,000 × \(\frac{100}{120}\) = 1,00,000
If C had purchased the items for A instead of B, then cost price for C = 1,32,000 × \(\frac{95}{100}\) = 1,25,400
Profit of A = 1,25,400 - 1,00,000 = 25,400