P sells a laptop to Q at a profit of 50 percent and Q sells it to R at a profit of 60 percent. What is the ratio of cost prices of P and R?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 5 : 12.
P sells a laptop to Q at a profit of 50 percent
CQ = CP × 150%
⇒ CQ = 1.50CP .....(1)
Q sells it to R at a profit of 60 percent
CR = CQ × 160%
⇒ CR = 1.60CQ ......(2)
Put the value from equation (1) in equation (2)
⇒ CR = 1.50CP × 1.60
⇒ CR = 2.40 CP
Ratio of CP/CR = 1/2.40 = 5/12
Required ratio = 5 : 12