A calculates his profit percentage on the selling price of an article whereas B calculates his profit on the cost price of the same article. The selling price of both of them is the same and both get 40% profit. If the difference between their profits is ₹ 120, then the selling price (in ₹)of the article is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1,050.
Given:
The selling price of both of them is the same and both get 40% profit. If the difference between their profits is ₹ 120
Formula used:
Profit = Selling price - Cost price
Selling price = Cost price + Cost price × profit%
Calculations:
Let the selling price of A and B be x
Cost price of A = x × 60% = 0.6x
Profit of A = x - 0.6 = 0.4x
Cost price of B = x/(140%) = 5x/7
Profit of B = x - 5x/7 = 2x/7
According to the question,
⇒ 0.4x - 2x/7 = 120
⇒ 4x/10 - 2x/7 = 120
⇒ (28x - 20x/70) = 120
⇒ 8x/70 = 120
⇒ x = 15 × 70 = 1050