Two vendors calculate their profit percentage on the cost price and selling price, respectively. What will be the difference between the profits (in ₹) if both the vendors declare a profit of 28% on the goods sold for ₹3,200?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 196.
Profit = 28% of CP
SP = 3200
So, CP = SP ÷ (1 + 28/100) = 3200 ÷ 1.28 = 2500
Profit = SP – CP = 3200 – 2500 = 700
Profit = 28% of SP = 28% of 3200 = 896
Difference in profits = 896 – 700 = 196