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April 13th, 2018, 11:17 PM  #1 
Senior Member Joined: Aug 2014 From: India Posts: 183 Thanks: 1  Why 1:4 is considered as cost price rather than profit ratio?
A person bought 2 refrigerators for a total of 42000. He sold one at a profit of 20% and the other at a profit of 30%. If his overall profit on selling both the refrigerators is 28%, then what is the selling price of the refrigerator, which was sold at a profit of 30%? Solution: The cost price of the refrigerators are in the ratio 1: 4 The cost price of the refrigerators which was sold at a profit of 30% = $42000 \dfrac{4}{5} = 33600$ The required selling price = $33600 \dfrac{100+30}{100}$ = 43680. In the diagram, we used profit percentages only so why 1:4 is considered as cost price ratio rather than profit ratio? Last edited by Ganesh Ujwal; April 13th, 2018 at 11:25 PM. 
April 14th, 2018, 07:53 AM  #2 
Global Moderator Joined: Dec 2006 Posts: 18,838 Thanks: 1564 
The profit percentages are percentages of corresponding cost prices, so 1:4 is the cost price ratio. If you proceed similarly using percentages of the corresponding selling prices, the ratio you use will be the selling price ratio. 

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