A trader sells an article at 20 percent profit If he buys it at half of the cost price and sells at the same selling price as before. then what will be the profit percentage?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 140 percent.
Selling price = Cost price × (100 + profit %)/100
Let's assume the cost price of the article = 100
After a 20 percent profit
Selling price = 100 × (100 + 20)/100 = 120
If he buys it at half of the cost price and sells at the same selling price as before
New cost price = 100/2 = 50
Selling price 120
Profit = (120 - 50)/50 × 100 = 140%