Question

Tom and John are engaged in buying and selling certain products A and B. Tom BUYS 5 of product A but

SELLS twice as much of product B. John on the other hand SELLS three times what Tom BOUGHT of
product A and BUYS 13 of product B. At the end of the business day, John banks Ksh 110,000/- while
Tom banks Ksh 230,000.
Under the assumption that the sale prices for product A and B are the same for the two men, and the
costs prices for the products A and B are also the same for the two men, obtain the following:
a) The price for product A and the price for product B (5 marks)
b) If there was a mark up of 25% on the cost price and a discount of 15% on the sale price, how
much would each of the partners have banked at the end of the business day? (10 marks)

Answer 1

Answer:Let's assume that the cost price for both products A and B is "C", and the selling price for both products A and B is "S". We can use this information to set up two equations, one for Tom and one for John, that relate the costs and profits for the two products:

Tom: 5C - 2(5S) = P1

John: 3(5C) - 13C = P2

where P1 and P2 are the profits made by Tom and John, respectively.

We know that at the end of the business day, John banks Ksh 110,000/- while Tom banks Ksh

230,000. So we can write:

P1 = 230,000 - 5C

P2 = 110,000 - 18C

Substituting these values into the equations for Tom and John, we get:

5C - 2(5S) = 230.000 - 5C

Simplifying these equations, we get:

10C - 10S = 230,000

2C = 110,000

Solving for C, we get:

C = 55,000

Substituting this value back into the first equation, we can solve for S:

10(55,000) - 10S = 230,000

Simplifying this equation, we get:

S = 32,000

Therefore, the price for product A is Ksh 55,000 and the price for product B is Ksh 32,000.

Explanation: