Question

The profit by selling an item was 25%. If the item was marked 40% above the selling price then what is the ratio of the marked to the cost price of the item?
1. 5 : 4
2. 7 : 4
3. 3 : 4
4. 1 : 4

Answer 1

Correct Answer - Option 2 : 7 : 4

Given:

Profit% = 25%

M.P = 40% above the selling price

Calculation:

Let the cost price of an item be Rs. 100x

Then, Selling price = Rs. 100x × (125/100) = Rs. 125x

Now, marked price is 40% above the selling price.

M.P = Rs. 125x × (140/100) = Rs. 175x

Ratio of M.P and C.P = Rs. 175x : Rs. 100x

⇒ 7 : 4

∴ The ratio of marked price and cost price is 7 : 4