A sold an article to B at 25% profit. B sold it to C at a profit of 10% and C sold it to D at 40% loss. If D boughtit for Rs. 46.20, then the difference between the profits of A and B is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs. 7.
Let the A's Cost price be x.
A's Selling Price =1.25x
B's CP =1.25x
B's SP =1.1(1.25x) = 1.375x
C's CP =1.1(1.25x) = 1.375x
C's SP =0.6(1.1)(1.25x) = 0.825x
D's CP =0.6(1.1)(1.25x) = 46.20
ATQ -
0.825x = 46.20
x = 46.20/0.825
x = Rs. 56
A's profit = 0.25x = 56/4 =14
B's profit = 0.125x = 7
Difference =14 - 7 = Rs. 7