Question
Two Friends sell an article for Rs. 960, each earning a 25%
profit. However, one friend calculates his profit based on the cost price, while the other calculates it based on the selling price. Determine the difference in the profit earned by both friends.Solution
ATQ;
Cost price of item for first Friend = 960 ÷ (100 + 25)% = 960÷1.25 = Rs.768
Cost price of item for second Friend = 960× (100 - 25)% = 960 × 0.75 = Rs.720
So, profit of first friend = 960- 768 = Rs.192
And, profit of second friend = 960-720 = Rs.240
Therefore, required difference = 240 – 192 = Rs.48
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