Sneha marks up an article 40% above the cost price and allows a discount of 10% on marked price. If Sneha made a profit of Rs. 364, then find the difference between both profits when he sold the same article at 25% profit?
Correct Answer :
14
Solution :
The correct answer is 14.
Let the Cost Price (CP) of the article be .
According to the problem, the article is marked up by 40% above the Cost Price.
Marked Price (MP) = CP + 40% of CP
Next, a discount of 10% is allowed on the Marked Price.
Discount = 10% of MP
Selling Price (SP) = MP - Discount
The initial profit made is given as Rs. 364.
Initial Profit = SP - CP
We are given:
Therefore, the Cost Price of the article is:
Now, we need to find the profit if the article is sold at a 25% profit.
New Profit = 25% of CP
So, the new profit is Rs. 350.
Finally, we calculate the difference between both profits:
Difference = Initial Profit - New Profit
Thus, the difference between both profits is Rs. 14.
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