A sells B a piece of furniture for $45,000 at a loss of 10% B sells it to C at a price which would have given A a profit of 20%. What percent does B gain?
The Usual Method
Selling price of A = Cost price of B = $45000
Hence cost price of A =
Selling price of A with 20% profit = Selling price of B = 50000 x 1.2 = 60000
Profit of B = Selling price of B – Cost price of B
= $60,000 – $45,000 = $15,000
Hence profit percent of B = %
Estimated Time to arrive at the answer = 45 seconds.
Observe that if A’s cost price would have been $100, his selling price with 10% loss would be $90 and his selling price with 20% gain would be $120. Hence gain = 120 – 90 = 30
Selling price of A with 10% loss = Cost price of B = $90.
Hence Profit %for B = %
Estimated Time to arrive at the answer = 15 seconds.