Question

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?

विकल्प

• A and B earn the same profit.

• A earns more profit than B.

• A earns less profit than B.

• Cannot be decided.

Answer 1

A earns less profit than B.

Explanation:

Cost price of tape recorder for A = Rs. 8000

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

= `20/100 xx 8000 + 8000`

= 20 × 80 + 8000

= 1600 + 8000

= Rs. 9600

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

= `20/100 xx 9600 + 9600`

= 1929 + 9600

= Rs. 11520

Here, Profit for A = Rs. 1600

Profit for B = Rs. 1920

So, A earns less profit than B.

Hence, A earns less profit than B.