Multiple choice

One shopkeeper calculates the percentage of profit on the buying price and another calculates on selling price. When their selling prices are the same, then the difference of their actual profit is Rs. 95 and both claim to have made 20% profit. What is the selling price of each ?

  1. Rs. 1900

  2. Rs. 2100

  3. Rs. 2850

  4. Rs. 2750

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let SP = selling price, CP1 = cost price for first shopkeeper (profit on CP), CP2 = cost price for second shopkeeper (profit on SP). For first: 1.2 × CP1 = SP, so CP1 = SP/1.2. For second: profit is 20% of SP, so CP2 = 0.8 × SP. Both have same SP but different profit amounts. Difference = 0.2SP - 0.2CP1 = 0.2SP - 0.2(SP/1.2) = 95. Solving: SP(0.2 - 0.2/1.2) = 95, so SP(0.2 - 0.1667) = 95, SP(0.0333) = 95, SP = 2850. Options A, B, D are incorrect values.