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A sells an article to B at a profit of 20% and B sells it to C at a profit of 20%. If C pays ₹360 for it, what was the cost price for A?
Question

A sells an article to B at a profit of 20% and B sells it to C at a profit of 20%. If C pays ₹360 for it, what was the cost price for A?

A.

₹308

B.

₹144

C.

₹250

D.

₹120

Correct option is C

Given:

C pays ₹360

B makes a 20% profit over A's cost

C makes a 20% profit over B's cost

Formula Used:

Final Price = Cost Price×(1+Profit%100)2\text{Cost Price} \times \left(1 + \frac{Profit\%}{100}\right)^2​​

Solution:

360 = A's CP ×(1.2)2\times (1.2)^2​​

360 = A's CP ×1.44\times 1.44​​

A's CP = 3601.44\frac{360}{1.44}​ = ₹250

Alternate Solution:

CP of A : SP of A (CP Of B) : SP of B (CP of C)

5 : 6 : (×5) : 5 : 6 (×6)

25: 30: 36

36 units = Rs. 360

25 units = Rs. 250

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