Question

If the cost price of an article is $\frac{4}{5}$ times its selling price, then its loss or profit percent is _____________.

• A. Profit% = 20%
• B. Profit% = 25%
• C. Loss% = 20%
• D. Loss% = 25%

Answer 1

The correct option is B Profit% = 25%

Let the Selling price (S.P) = 100
$\therefore$ Cost price(C.P) = $\frac{4}{5}\times 100$
C.P = 80
Here C.P < S.P.
So, Profit = S.P - C.P
Profit = 100 - 80 = 20
$\therefore$Profit% = $\frac{20}{80}\times 100$ = 25%