Kiran sells an object to Varun at a profit of 10%. Varun sells that object to Arun for ₹1,155 and makes a profit of 5%. At what cost did Kiran purchase the object?

Correct option is A

Given:

Kiran sold object to Varun at 10% profit

Varun sold it to Arun at 5% profit

Arun paid ₹1155

Formula Used:

Profit = SP - CP

Profit Percentage =$$\frac{Profit}{Cost\ Price} \times 100$$​​

Solution:

Let the Cost Price of Kiran be x

Then Selling Price for Kiran = x + 10% of x = 1.1x

Selling price of Kiran is Cost Price of Varun

Hence CP of Varun is 1.1x

Varun sold music system at 5% profit

Hence selling price of Varun is 1.1x + 5% of 1.1x = 1.1x+0.055x = 1.155x

But selling price of Varun is Cost Price of Arun

And Arun paid Rs1155

1.155x = 1155

​$$x=\frac{1155}{1.155} = Rs 1000$$​​

Alternative Method:

​$$SP = CP \times \frac{(100+Profit)}{100} \times \frac{(100+Profit)}{100}$$​

​$$CP = 1155 \times \frac{100}{110} \times \frac{100}{105}$$​​

= ₹1000