If 70% of the cost price of an article is equal to 40% of its selling price, what is the profit percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 75%.
Let the cost price (C.P.) of the article be x and the selling price (S.P.) be y
According to the question
⇒ 70% of x = 40% of y
⇒ 0.7x = 0.4y
⇒ y = 0.7x/0
⇒ y = 7x/4
Now, the profit is the difference between the selling price and the cost price:
Profit = y - x
⇒ 7x/4 - x = (7x - 4x)/4 = 3x/4
To calculate the profit percentage
Profit percentage = Profit/C.P. × 100
⇒ 3x/4/x × 100
⇒ 3/4 × 100 = 75%
Thus, the profit percentage is 75%.