A sells a bicycle to B at a profit of 20%. B sells it to C at a profit of 25%.…
2025
A sells a bicycle to B at a profit of 20%. B sells it to C at a profit of 25%. If C pays Rs 225 for it the cost price of the bicycle for A is
- A.
Rs. 110
- B.
Rs. 120
- C.
Rs. 125
- D.
Rs. 150
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Correct answer: D
Solution: Work backwards from the final price.
Step 1: C paid Rs 225 after a 25% profit. So the price before that profit (B's selling price) = 225 ÷ 1.25 = Rs 180.
Step 2: That Rs 180 is the price after A sold to B at a 20% profit. So A's original cost = 180 ÷ 1.20 = Rs 150.
Combined check: 225 ÷ (1.25 × 1.20) = 225 ÷ 1.5 = Rs 150.
Answer: Rs 150