Watson bought a book for Rs. 240 and sold to Johny at a profit of 50%. Johny wants to sell this book to Shekar so that he earns a profit of 25%. But Shekar is adamant at buying this book at a discount of 10%. What marked price should Johny quote to Shekar so as to achieve desired profit ?
Explanation:
Watson bought the book for Rs. 240 and sold to Johny at a profit of 50%.
S.P = C.P(1 + P%/100)
=> S.P for Watson = C.P for Johny
= 240(1 + 50/100) = 240 x 1.5 = Rs. 360
Let Johny quoted the marked price of the book as Rs. M
We know, SP = M.P(1 - Discount(%)/100)
Here discount = 10% to Shekar,
S.P for Johny = M(1 - 10/100) = 0.9M
But Johny want to earn 25% profit,
=> S.P = C.P(1 + P%/100)
=> 0.9M = 360(1 + 25/100)
=> M = (360x1.25)/0.9
=> M = Rs. 500
Therefore, Johny should quote Rs. 500 as the marked price of the book to get 25% profit and allowing 10% discount to Shekar.
Hence, option 3 is the correct answer.
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By: Amit Kumar