Question

If profits are $25\%$ of selling price, what is the percentage of profit to cost ?

• A. $20\%$
• B. $25\%$
• C. $30\%$
• D. $331/3\%$

Answer 1

The correct option is D $331/3\%$

This can be understood as below:

If the Selling price is Rs.100

Profit will be 25 % i.e. Rs.25

Hence the cost will become Rs.75 i.e. (Rs.100 - Rs. 25)

Therefore the profit on cost will become = Profit / Cost *100

Profit on cost = Rs.25 *100

Rs.75

Profit on cost will be = 33.33%