Question

If the cost price of a pen is 80% of the selling price, then what is profit %?
1. 25%
2. 30%
3. 40%
4. 10%

Answer 1

Correct Answer - Option 1 : 25%

Given:

The cost price of pen is 80% of selling price

Concept:

Gain: The amount gained by selling a product with more than its cost price.

Formula Used:

Profit = Selling price – Cost Price

Profit percentage = (Profit/Cost Price) × 100

Calculation:

Let the Selling price of pen be 100 x

So, the cost price of pen = 80% of 100x = 80x

Profit = 100x - 80x = 20x

Profit % = (20x/80x) × 100 = 100/4 = 25%

∴ The profit percent is 25%.