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%.