Q Two merchants sell each an article for Rs 1000 If Merchant A computes his profit on cost price while

B) 50
profit on cost price = 1000-(100/125)*1000= 200 (selling price-cost price)
profit on selling price = (25/100)*1000 = 250
difference = 50
10 years agoHelpfull: Yes(48) No(0)

merchant A: merchant B
sp=1000; sp=1000;
profit=0.25cp; profit on sp=0.25sp
sp-cp=0.25cp; =0.25*1000
sp=1.25cp; =250
cp=(1000)/1.25=200
so, cp of B - cp of A=250-200=50
10 years agoHelpfull: Yes(10) No(0)
Merchant B computes his profit as a percentage of selling price. He makes a profit of 25% on selling price of Rs.1000. i.e. his profit = 25% of 1000 = Rs.250

Merchant A computes his profit as a percentage of cost price.
Therefore, when he makes a profit of 25% or 1/4th of his cost price, then his profit expressed as a percentage of selling price = 1/(1+4) = 1/5th or 20% of selling price.
So, Merchant A makes a profit of 20% of Rs.1000 = Rs.200.

Merchant B makes a profit of Rs.250 and Merchant A makes a profit of Rs.200
Hence, Merchant B makes Rs.50 more profit than Merchant A.
8 years agoHelpfull: Yes(4) No(1)
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7 years agoHelpfull: Yes(4) No(0)
easy way to solve this question is
according to merchant A his profit+cost price=1000 ie 125%
according to merchant B his profit+cost price=1000 ie 100%
then the difference is 50
10 years agoHelpfull: Yes(2) No(7)
Merchant B(MB) marks 25% on Selling price, hence his profit will be:
MB=(25/100)*1000=250
SP/CP=5/4 (25% profit, implies the increment fraction is 5/4)
And we know SP =1000
On solving we get CP =800
Merchant A(MA) marks 25% on Cost price, hence his profit will be:
MA=(25/100)*800=200
MB-MA=250-200=50
4 years agoHelpfull: Yes(0) No(0)

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