Correct option is C
Given:
20% of profit on selling price
Formula Used:
Profit = Selling Price - Cost Price
When Profit Percentage is calculated on Selling Price then, Profit Percentage =
When Profit Percentage is calculated on Cost Price then, Profit Percentage =
Solution:
Let the selling price be 100x
=> Profit = 20% of the selling price
=> Profit = 20% × 100x = 20x
Cost price = selling price – Profit
=> Cost price = 100x – 20x = 80x
Profit% on the cost price =
=> Profit% on the cost price = × 100
=> Profit% on the cost price = 25%
Alternate Solution:
20% profit on Selling Price means Profit = 1 unit and Selling Price = 5 unit
then, Cost Price = Selling Price - Profit = 5 - 1 = 4 unit
Profit Percentage on Cost Price =