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 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

The correct option is B B earns more profit than A.


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.