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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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