Question

The ratio of cost price to marked price of a product is 5 : 7. If the shopkeeper does not give any discount then what will be his profit percentage?
1. 20%
2. 25%
3. 40%
4. 50%

Answer 1

Correct Answer - Option 3 : 40%

Given:

The ratio of cost price to marked price of a product is 5 : 7.

Formula used:

Profit = (SP – CP) 

Profit % = Profit × 100/CP

Calculation:

CP ∶ MP = 5 ∶ 7

Discount is always given on marked price, so if there is no discount then Marked price = Selling price 

Profit = SP – CP = 7 – 5 = 2

Profit% = [Profit × 100] / CP = [2 × 100] /5 = 40%

∴ The profit percentage is 40%.