Multiple choice

The profit percentage of P and Q is same on selling the articles at Rs. 1800 each but P calculates his profit on the selling price while Q calculates it correctly on the cost price which is equal to 20%. What is the difference in their profits?

  1. 40

  2. 50

  3. 60

  4. 70

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Selling price = 1800. Q's profit = 20% on cost price. 1800 = CP + 0.2*CP = 1.2*CP => CP = 1500. Profit = 300. P's profit = 20% on selling price = 0.2 * 1800 = 360. Difference = 360 - 300 = 60.

AI explanation

Using the selling price formula, Q's cost price is 1800 divided by 1.20 because his actual profit is 20%, resulting in a cost of 1500 and a profit of 300. P calculates his 20% profit directly on the selling price, so his profit is 1800 times 0.20 which equals 360. To find the difference in their actual profits, subtract Q's profit from P's profit. The difference is 360 minus 300, resulting in 60.

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