Latest IBM Aptitude Question SOLUTION: Q. 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 profi

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Q. 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?
Option
A) Rs.66.67
B) Rs. 50
C) Rs.125
D) Rs.200

Asked In IBM Sankeerthana (10 years ago)

Unsolved Read Solution (6)

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Read Solution (6) :

upendra singh chahar  (10 years ago)

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

Is this solution Helpfull? Yes (48) | No   

krupa  (9 years ago)

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

Is this solution Helpfull? Yes (10) | No   

uthra murugesan  (8 years ago)

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.

Is this solution Helpfull? Yes (4) | No (1)  

Nikitha Reddy  (6 years ago)

friends my name is nikitha can any one send me the IBM all previous papers including business communication skills please send me this is my mail id is nikithareddy510.nr87@gmail.com@gmail.com

Is this solution Helpfull? Yes (4) | No   

Thushara Damera  (10 years ago)

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

Is this solution Helpfull? Yes (2) | No (7)  

Supriya Vishwanath  (3 years ago)

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

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