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Two merchants sell, each an article for Rs.1000. If Merchant A computes his profit on cost price, while Merchant B computes his profit on selling price, they end up making profits of 25% respectively. By how much is the profit made by Merchant B greater than that of Merchant A?
A) Rs.66.67
B) Rs. 50           
C) Rs.125           
D) Rs.200

1 Answer

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SP = Rs. 1000.

For A, Profit = 0.25 C.P. = x.
So, SP = CP + x = Rs. 1000,
5x = Rs. 1000
x = Rs. 200.

For B, Profit = 0.25 S.P. = Rs. 250.

So, difference in profit = Rs. 250 - Rs. 200 = Rs. 50.

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