Concept:Profit is the net gain from all transactions. Suman's total profit includes his initial profit from the first sale plus the savings from buying the earpiece back at a lower price.
Explanation:Step 1: Suman's cost price (CP) = Rs. 100. He sells to Rachna at 10% profit. So selling price (SP) =
100×100110​=110. Profit = Rs. 10.
Step 2: Rachna sells to Deepti at 20% profit. Deepti's CP = Rs. 110. SP =
110×100120​=132.
Step 3: Deepti sells back to Suman at a loss of 36.36%. Loss% =
114​ exactly. So Suman's new CP =
132×(1−114​)=132×117​=84.
Step 4: Suman initially had the earpiece costing Rs. 100. After selling and buying back, his net cost for the earpiece is reduced. Net cost = Original CP - (Sale price from first transaction - Buyback price) =
100−(110−84)=100−26=74.
Step 5: The total profit earned by Suman is the reduction in cost plus the first profit. Alternatively, profit = (Original CP - New CP) + First profit =
(100−84)+10=16+10=26.
Answer:Rs. 26 (Option A).