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    Question

    If the profit is 25% of the cost price, then it

    is:
    A 25% of the sales price Correct Answer Incorrect Answer
    B 33% of the sales price Correct Answer Incorrect Answer
    C 20% of the sales price Correct Answer Incorrect Answer
    D 40% of the sales price Correct Answer Incorrect Answer

    Solution

    Let cost price = ₹100, profit = ₹25, then selling price = ₹125 Profit as % of sales = 25 / 125 × 100 = 20% Oops! That’s wrong — wait: Let’s retry: If profit is 25% of cost, and cost = ₹100 Then selling price = ₹125 So profit as % of selling price = 25/125 = 20%

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