CAT 2023 Slot 2 QA Question 9: Minu purchases a pair of sunglasses at Rs.1000 and sells to Kanu at 20% profit. Then, Kanu sells it back to Minu at 20% loss. Finally, Minu sells the same pair of sunglasses to Tanu. If the total prof

Question

Minu purchases a pair of sunglasses at Rs.1000 and sells to Kanu at 20% profit. Then, Kanu sells it back to Minu at 20% loss. Finally, Minu sells the same pair of sunglasses to Tanu. If the total prof

Accepted Answer

Minu first buys the sunglasses for Rs. 1000 and sells them at 20% profit.

$	ext{Selling price to Kanu} = 1000 	imes 1.20 = 1200$
$	ext{Profit in first transaction} = 1200 - 1000 = 200$

Kanu then sells the same sunglasses back to Minu at 20% loss.
$	ext{Cost price for Minu the second time} = 12