x sells an article to Y at a profit. Y then sells it to Z for $60 at a profit of 20%. If X had sold the article directly to Z for $60, how much MORE profit would he have made?
A) $10
B) $12
C) $48
D) $50
E) It cannot be found.
To find out how much more profit X would have made if he had sold the article directly to Z for $60, we need to compare the profit made by X in both scenarios.
Let's start by figuring out the profit made by Y when selling the article to Z. We know that Y sold it for $60, which corresponds to a 20% profit. So, to find the cost price for Y, we divide $60 by 1.20 (1 + 20% expressed as a decimal):
Cost price for Y = $60 / 1.20 = $50
Now, since Y purchased the article from X at a profit, we need to determine the cost price for X. Since Y's selling price was $50, and it corresponded to a 20% profit, we divide $50 by 1.20:
Cost price for X = $50 / 1.20 = $41.67 (rounded to the nearest cent)
Thus, if X had sold the article directly to Z for $60, his profit would have been $60 - $41.67 = $18.33.
Now, let's compare this profit with the profit X made in the given scenario where he sold the article to Y. The profit made by X can be found by subtracting the cost price for X from the selling price to Y:
Profit made by X in the given scenario = $50 - $41.67 = $8.33
Finally, to determine how much more profit X would have made, we subtract the profit made in the given scenario from the profit made if X had sold the article directly to Z:
More profit = $18.33 - $8.33 = $10
Therefore, X would have made $10 more profit if he had sold the article directly to Z for $60.
Hence, the answer is A) $10.