CAT - Profit and Loss Simple Question

Question

Traders A and B buy two goods for Rs. 1000 and Rs. 2000 respectively. Trader A marks his goods up by x%, while trader B marks his goods up by 2x% and offers a discount of x%. If both make the same profit, find x
A.      25%
B.      12.5%
C.      37.5%
D.      40%

Answer Choice: (A)

Explanatory Answer:
SP of trader A = 1000 (1 + x)
Profit of trader A = 1000 (1 + x) - 1000
MP of trader B = 2000 (1 + 2x)
SP of trader B = 2000 (1 + 2x) (1 - x)
Profit of trader B = 2000(1 + 2x) (1 - x)- 2000
Both make the same profit => 1000(1 + x) – 1000 = 2000(1 + 2x) (1 - x)- 2000
1000x = 2000 – 4000x2 + 4000x – 2000x - 2000
4000x2 -1000x = 0
1000x (4x - 1) = 0
ð  x = 25%
Answer Choice (A)

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IIM CAT Preparation Tips: CAT - Profit and Loss Simple Question

Jun 21, 2013

CAT - Profit and Loss Simple Question

Question

Traders A and B buy two goods for Rs. 1000 and Rs. 2000 respectively. Trader A marks his goods up by x%, while trader B marks his goods up by 2x% and offers a discount of x%. If both make the same profit, find x
A.      25%
B.      12.5%
C.      37.5%
D.      40%

Answer Choice: (A)

Explanatory Answer:
SP of trader A = 1000 (1 + x)
Profit of trader A = 1000 (1 + x) - 1000
MP of trader B = 2000 (1 + 2x)
SP of trader B = 2000 (1 + 2x) (1 - x)
Profit of trader B = 2000(1 + 2x) (1 - x)- 2000
Both make the same profit => 1000(1 + x) – 1000 = 2000(1 + 2x) (1 - x)- 2000
1000x = 2000 – 4000x2 + 4000x – 2000x - 2000
4000x2 -1000x = 0
1000x (4x - 1) = 0
ð  x = 25%
Answer Choice (A)

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