Two merchants Vijay and kamal sell, each an article for Rs.7440. If Vijay computes his profit on cost price, while Kamal computes his profit on selling price, they end up making profits of 16 ¼ % respectively. What is the difference between their profit?
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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 (
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1
)
th
of his cost price, then his profit expressed as a percentage of selling price = 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.
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