Multiple choice

Find the selling price of goods if two salesmen claim to make 25% profits each, one calculating it on cost price while another on the selling price, the difference in the profits earned being Rs 100 and selling price being the same in both the cases.

  1. 500

  2. 1000

  3. 1500

  4. 2000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let SP be S. Profit 1 (on CP) = 0.25 * CP1 = S - CP1 => 1.25 * CP1 = S => CP1 = S/1.25 = 0.8S. Profit 1 = 0.2S. Profit 2 (on SP) = 0.25 * S. Difference = 0.25S - 0.2S = 0.05S = 100. S = 2000.

AI explanation

Let the selling price be S. For the first salesman, profit calculated on cost price is 0.25 multiplied by the cost price, meaning the cost price is S divided by 1.25, and the profit is S divided by 5, which is 0.2S. For the second salesman, profit calculated on selling price is 0.25S. The difference in their profits is 0.25S minus 0.2S, which equals 0.05S. Given that this difference is Rs 100, we solve 0.05S = 100 to find S = 2000. The selling price is 2000.

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