If the cost price of an article is 80% of its selling price, what is the profit percentage?
The profit is 25%. Take the selling price as 100; the cost price is then 80 and the profit 20. Profit percentage is measured on cost: 20 ÷ 80 × 100 = 25%. The figure 20% is…
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If the cost price of an article is 80% of its selling price, what is the profit percentage?
Answer and explanation
Correct answer B
The profit is 25%. Take the selling price as 100; the cost price is then 80 and the profit 20. Profit percentage is measured on cost: 20 ÷ 80 × 100 = 25%. The figure 20% is the profit as a share of the selling price, not of the cost.
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Common Management Admission Test (CMAT)