Question

If selling price of 16 items is same as the cost price of 20 items, then there is a

• A. loss of 20%
• B. loss of 25%
• C. gain of 20%
• D. gain of 25%

Answer 1

The correct option is D gain of 25%

Let C.P. of 1 item $=Re.1$
$\therefore$ C.P. of 20 items $=Rs.20$
By hypothesis, S.P. of 16 items $=Rs.20$
$\therefore$ S.P. of 20 items $=Rs.\frac{20\times 20}{16}=Rs.25$
$\therefore$ Gain $=Rs.25-Rs.20=Rs.5$
Hence, Gain% $=\frac{5}{20}\times 100=25$