A sells an item at 20% profit to B. B sells it to C at 10% profit. C sells it to D at INR 116/- profit. Difference between the cost price of D and cost price of A was INR 500/-. How much did B pay to A for the item
Explanation:
Let the cost price of A be INR x.
∴ Selling price of KA = 120/100x = 6/5x
or cost price of B = 6/5x
∴ Selling price of B or cost price of C
= 110/100×6/5x = 33/25x
Now, selling price of C or cost price of D
= 33/25x+116
According to question,
33/25x+116-x = 500
33/25x-x=500-116
8/25x=384⇒x=INR 1200/-
∴ Selling price of A = 6/5×1200 = INR 1440/-