A sold an article to B at a profit of 25%. B sold it to C at a profit of 15%. The profit made by B is Rs. 40 less than the profit made by A. What is the cost price (in Rs.) of the article for A?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 640.
Let the CP of an article for A = 100x
SP of an article For A = CP of an article for B = 100x × 125% = 125x
SP of an article for C = CP of an article for A = 125x × 115% = 143.75x.
Profit made by B = 143.75x - 125x = 18.75x.
xProfit made by A = 125x - 100x= 25x
Difference of their profits = 25x - 18.75x = 40
6.25x = 40
x = 6.4.
Cost price pf an article = 100x = 100 × 6.4 = 640.