Question

$A$ sells to $B$ an item at $20\%$ profit. $B$ sells the same item to $C$ at $25\%$ profit. If $C$ pays Rs. $1950$ for it. What is the price at which $A$ bought the item?

• A. Rs. $1100$
• B. Rs. $1200$
• C. Rs. $1300$
• D. Rs. $1400$

Answer 1

Answer: (C)

Rs. $1300$

For A, let's assume cost price of item is X Rs.

Since A sells item to B at 20% profit.

$\therefore$ Cost Price for B = Selling Price for A = $X+20\%ofX=1.2X$

Now, B sells the same item to C at 25% profit

$\therefore$ Cost Price for C = Selling Price for B = $1.2X+25\%of1.2X=1.5X$

C Pays 1950 Rs.

$\Rightarrow 1.5X=1950$

$\therefore X=\frac{1950}{1.5}=1300$

So, A baught the item at $Rs.1300$