Ram makes a profit of 30% by selling an article. What would be the profit percent if it were calculated on the selling price instead of the cost price? (correct to one decimal place).
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e 23.1%
| Understanding | Application |
| Profit = [(Selling price - Cost price) / Cost price] × 100 |
In the denominator, we can see the cost price because in general, we calculate the profit on the cost price. Let the price of an article be 100 ⇒ 30 / 100 = (SP - 100) / 100 ⇒ SP = 130 When we calculate on selling price. ⇒ Profit% = (130 - 100) / 130 ⇒ Profit = (3 / 13) × 100 ⇒ Profit = 23.1% |