If the cost price of 6 pens is the same as the selling price of 5 pens, find the profit/loss percentage.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 20% profit.
the cost price (CP) of 6 pens = the selling price (SP) of 5 pens
Let the cost price of 1 pen = CP
the selling price of 1 pen = SP
⇒ 6 × CP = 5 × SP
⇒ SP = (6 × CP)/5
Profit = SP − CP
⇒ Profit = 6/5 × CP − CP = (6/5 - 1) × CP = 1/5 × CP
Profit Percentage = Profit/CP × 100
Profit Percentage = (1/5 × CP)/CP × 100 = 1/5 × 100 = 20%