S sells an item costing ₹ 37,800 to P with 8% profit. P sells it to Q with a 4% loss. At what price (in ₹) does P sell the item? (Correct to a nearest rupee)
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 39,191.
Given that
S sells an item costing ₹ 37,800 to P with 8% profit
P sells it to Q with a 4% loss.
Selling price = Cost price × (100 + profit %)/100
Selling price = Cost price × (100 - loss %)/100
According to the question
S sells the item to P for = 37800 × (108/100) = ₹ 40824
P purchased the item for ₹ 40824.
Hence, P sells the item to Q costing = 40824 × (96/100) = ₹ 39,191.04