A sells a bicycle to B at a profit of 20%. B sells it to C at a profit of 25%. If C pays Rs. 225 for it, the cost price of the bicycle for A is:________?
Correct answer: D. Rs. 150General Reference
- A. Rs. 110
- B. Rs. 120
- C. Rs. 125
- D. Rs. 150General Reference
Explanation
If A's cost price is x, C pays x x 1.20 x 1.25 = Rs. 1.50x. Therefore x = Rs. 225 / 1.50 = Rs. 150. The likely wrong choice is Rs. 125, from considering only B's 25% profit and ignoring A's 20% profit.
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About Profit and Loss
Profit and loss compare the cost price and selling price of an item, using profit or loss percentages based on the cost price unless stated otherwise. Questions include marked price, discount, successive discounts, commission, and finding an unknown price, with care needed to distinguish discount from loss.
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