Question

Two vendors calculate their profit percentage on the cost price and selling price, respectively. What will be the difference between the profits (in ₹) if both the vendors declare a profit of 28% on the goods sold for ₹3,200?

• A. 196
• B. 700
• C. 548
• D. 896

Answer 1

Answer:

A. 196

Selling Price (SP) = ₹3200
Profit declared = 28%

Vendor 1: Profit on Cost Price

$SP = 1.28 \times CP$
$CP = \frac{3200}{1.28} = 2500$
Profit = 3200 − 2500 = ₹700

Vendor 2: Profit on Selling Price

$\text{Profit} = 28$
Difference between profits

$896 - 700 = 196$
Final Answer: ₹196