Question

If the cost price of a luxury item is 20% of its selling price, what is the profit percent?

• A. 100%
• B. 200%
• C. 300%
• D. 400%

Answer 1

The correct option is D 400%

Let the Selling price of the item be = ₹ x
Cost price of the item = 20% of x = ₹ 0.2 x
Profit = S.P - C.P = x - 0.2x = ₹ 0.8x
Profit percent = $\frac{profit}{Costprice}\times 100$
= $\frac{0.8x}{0.2x}\times 100$ = 400
$\therefore$ There is 400% profit.