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    What percentage of profit on cost price equals 20% of profit on selling price?
    Question

    What percentage of profit on cost price equals 20% of profit on selling price?

    A.

    28%

    B.

    30%

    C.

    25%

    D.

    22%

    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 = (ProfitSelling Price)×100\left(\frac{\text{Profit}}{\text{Selling Price}}\right) \times 100
    ​When Profit Percentage is calculated on Cost Price then, Profit Percentage = (ProfitCost Price)×100\left(\frac{\text{Profit}}{\text{Cost Price}}\right) \times 100
    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 = (ProfitCost Price)×100\left(\frac{\text{Profit}}{\text{Cost Price}}\right) \times 100​​
    => Profit% on the cost price = 20x80x\frac {20x}{80x}​ × 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 =  14×100=25%\frac {1}{4} \times 100 = 25\%​​

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