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Each of the two merchants sell an article for ₹1,000. If Merchant A computes his profit on the cost price, while Merchant B computes his profit on the selling price, then they both end up making profits of 25%. By how much is the profit made by Merchant B more than that of Merchant A?

A₹45

B₹40

C₹35

D₹50

Answer:

D. ₹50

Read Explanation:

Let the selling price (SP) for both = ₹1000

Merchant A (profit on cost price = 25%)

SP=1.25×CPSP = 1.25 \times CP

CP=10001.25=800CP = \frac{1000}{1.25} = 800

Profit of A:
1000 - 800 = 200

Merchant B (profit = 25% of selling price)

Profit=25\text{Profit} = 25% \text{ of } 1000 = 250

So, profit of B = ₹250


Difference in profit

250 - 200 = 50

Final Answer:

₹50


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