Question

A shopkeeper calculate percentage profit on the buying price and another on the selling price. What will be their difference in profits if both claim a profit of 25% on goods sold for Rs. 4000?

Answer 1

Answer:

Difference in profit = Rs. 250

Step-by-step explanation:

For shopkeeper calculating profit on selling price,

Profit = 25% of 4000 = Rs. 1000

Hence buying price = Rs. 3000

For shopkeeper calculating profit on buying price,

Buying price = Rs. 3000

Profit = 25% of 3000 = Rs. 750

Difference in profit = (1000-750) = Rs. 250

Answer 2

Answer:

Rs 200

Step-by-step explanation:

Selling Price = Rs 4000

25 % Profit on Selling Price

Profit = (25/100) * 4000 = Rs 1000

Selling Price = Rs 4000

Let Say Cost Price = Rs C

25% Profit on buying/Cost Price

Profit = (25/100)C = C/4

Selling Price = C + C/4 = 5C/4

5C/4 = 4000

C = 3200

Profit = 4000 - 3200 = Rs 800

Difference in Profit = 1000 - 800 = Rs 200