Question

A bought a tape recorder for Rs 8,000 and sold it to B. After that B sold it to C, each earning a profit of $20\%$. Which of the following is/are true?

• A. A and B earn the same profit.
• B. B earns more profit than A.
  
• C. A earns less profit than B.
  
• D. Cannot be decided.

Answer 1

Answer: (B), (D)

The correct options are
B B earns more profit than A.

D Cannot be decided.

Cost price of A = Rs. 8000
A sold at a profit of $20\%$, so S.P of $A=\left(\frac{120}{100}\right)\times Rs.8000$
= Rs. 9600
Profit of A = Rs. (9600 - 8000) = Rs. 1600
S.P of A = C.P of B = Rs. 9600
S.P of $B=\left(\frac{120}{100}\right)\times Rs.9600=Rs.11520$
Profit of B = Rs. (11520 - 9600)
= Rs. 1920
Hence, B earns more profit than A.