Question
Two vendors sell an electronic gadget for Rs. 1500,
making a profit of 20%. One vendor calculates his profit based on cost price, while the other considers selling price. Determine the difference in their earnings.Solution
ATQ;
Cost price for the first vendor = 1500 ÷ (100 + 20)% = 1500 ÷ 1.20 = Rs. 1250
Cost price for the second vendor = 1500 × (100 - 20)% = 1500 × 0.80 = Rs. 1200
Profit of the first vendor = 1500 - 1250 = Rs. 250
Profit of the second vendor = 1500 - 1200 = Rs. 300
Difference in profit = 300 - 250 = Rs. 50
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