A sells an item at 20% profit to B, B sells the same at 10% profit to C and receives ₹1,32,000.0. Had C purchased the same item from A, he would have spent 5% less than what he spent with B. What profit would A have made then?

Let Cost price of A = C

Selling price of A at 20% profit = $$\frac{120}{100}\text{C}$$

Cost price of B = $$\frac{120}{100}\text{C}$$

Selling price of B at 10% profit = $$\frac{110}{100}\times\frac{120}{100}\text{C}$$

Given, selling price of B = ₹1,32,000

$$=$$>  $$\frac{110}{100}\times\frac{120}{100}\text{C}$$ = 1,32,000

$$=$$>  C = ₹1,00,000

Cost price of C = ₹1,00,000

If C purchased the item from A, he would have spent 5% less

$$=$$>  Cost price of C when purchased from A = $$\frac{95}{100}\times132000$$ = ₹1,25,400

Selling price of A = ₹1,25,400

Cost Price of A = ₹1,00,000

Profit of A = 1,25,400 - 1,00,000 = ₹25,400

Hence, the correct answer is Option A