Gopi purchased an article at $$\frac{7}{8}$$​ of its selling price. Had he sold it at 20%  more than the selling price, then what would be his profit percentage be?

Correct option is C

Given:

Gopi purchased article at $$\frac{7}{8}$$​ of selling price

Formula Used:

Profit = SP - CP

Profit percent = $$\frac{Profit}{CP} \times 100$$​​

Solution:

Let the selling price of article be x

Then Cost Price for Gopi =$$\frac{7}{8} of x = \frac{7x}{8}$$​​

If Gopi sells article for 20% more than selling price then

Selling price for Gopi =x + 20% of x = x + 0.2x = 1.2x

Profit for Gopi = $$1.2x - \frac{7x}{8} = \frac{9.6x - 7x}{8} = \frac{2.6x}{8} = \frac{1.3x}{4}$$​​

Profit percent $$= \frac{\frac{1.3x}{4}}{\frac{7x}{8}} \times 100 = \frac{260}{7} = 37\frac{1}{7}\%$$​​