Multiple choice

A sells an iron box to B at 10% profit. B sells it to C for 20% profit. If C pays Rs. 528, then the cost price of A is-

  1. Rs. 400

  2. Rs. 508

  3. Rs. 500

  4. Rs. 498
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Work backwards from C's price. If C pays Rs. 528 after B's 20% profit, then B's selling price was 528. B's cost was 528 ÷ 1.2 = Rs. 440. Since A made 10% profit selling to B, A's cost was 440 ÷ 1.1 = Rs. 400. In profit chains, always divide by (1 + profit%) to reverse the calculation.

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