Profit Calculation in Dealer Transactions

Problem Summary

• An article is sold at a 38% profit based on the original cost price.
• The first dealer makes a 20% profit.
• The problem seeks the profit percentage of the second dealer.

Calculations

• Let the original cost price be 'x'.

• The first dealer's selling price (SP1) = x + 0.20x = 1.20x

• This selling price becomes the cost price for the second dealer.

• The selling price of the second dealer (SP2) = x + 0.38x = 1.38x

• The second dealer's profit is calculated based on their cost price (1.20x).

• Profit for the second dealer = SP2 - Cost for second dealer = 1.38x - 1.20x = 0.18x

• Profit percentage for the second dealer = (Profit / Cost Price) * 100 = (0.18x / 1.20x) * 100 = 0.15 * 100 = 15%

Conclusion

• The second dealer makes a profit of 15% on their cost price.