Q. 124.5( 2 Votes )

Out of the four options, only one is correct. Write the correct answer.

A bought a tape recorder for Rs 8,000 and sold it to B . B in turn sold it to C, each earning a profit of 20%. Which of the following is true:
A. A and B earn the same profit.

B. A earns more profit than B.

C. A earns less profit than B.

D. Cannot be decided.

Answer :

Cost Price of tape recorder for A = ₹8000

Cost price of tape recorder for B = 20% profit on cost price for A


= 8000 + 8000


= 20 × 80 + 8000


= 1600 + 8000


= ₹9600


Cost price of tape recorder for C = 20% profit on cost price for B


= 9600 + 9600


= 20 × 96 + 9600


= 1920 + 9600


= ₹11520


Here, profit for A = ₹1600


Profit for B = ₹1920


So, A earns less profit than B.


Hence, option (c) is correct.

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