Question

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 1

Answer:

D. ₹50

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

Merchant A (profit on cost price = 25%)

$SP = 1.25 \times CP$

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

Profit of A:
1000 - 800 = 200

Merchant B (profit = 25% of selling price)

$\text{Profit} = 25$

So, profit of B = ₹250

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Difference in profit

250 - 200 = 50

Final Answer:

₹50