If the cost price of an article is 80 percent of its selling price, then what is the profit percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 25 percent.
Let the Selling Price = Rs.100
Since the Cost Price is 80% of the Selling Price:
C.P. = 80% of S.P.
⇒ C.P. = 80/100 × 100 = 80
Thus:
S.P. = 100
C.P. = 80
Profit = S.P. − C.P.
⇒ Profit = 100 − 80 = 20
Profit % = (Profit/C.P.) × 100
⇒ Profit % = (20/80) × 100
⇒ Profit % = 2000/80 = 25%
The profit percentage is 25%.