The ratio of the cost price and the selling price is 4:5. The profit percent is:__________?
Correct answer: C. 25%
- A. 10%
- B. 20%
- C. 25%
- D. 30%
Explanation
Let the cost price be 4 parts and the selling price be 5 parts, so the profit is 1 part. Profit percentage = (1/4) x 100 = 25%. A student may choose 20% by treating the profit as a fraction of the selling price instead of the cost price.
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About Profit and Loss
Profit and loss compare the cost price and selling price of an item, using profit or loss percentages based on the cost price unless stated otherwise. Questions include marked price, discount, successive discounts, commission, and finding an unknown price, with care needed to distinguish discount from loss.
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