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Two merchants sell, each an article for Tk. 1000. If Merchant A computer his profit on cost price, while Merchant B computes his profit on selling price, they end up making profits of 25% respectively. By how much is the profit made by Merchant B greater than that of Merchant A?

Two merchants sell, each an article for Tk. 1000. If Merchant A computer his profit on cost price, while Merchant B computes his profit on selling price, they end up making profits of 25% respectively. By how much is the profit made by Merchant B greater than that of Merchant A? Correct Answer 50

B computes his profit as a percentage of selling price. So His profit = 25% of 1000 = 250 Tk A computes his profit as a percentage of cost price. Therefore, when he makes a profit of 25% or 14th of his cost price, then his profit expressed as a percentage of selling price = 11 + 4 = 15th or 20% of selling price. Hence, B makes (250 - 200) Tk = 50 Tk more than A.

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