15% of the marked price of an item is equal to 25% of its cost price. If a discount of 25% is given on the sale of the item, then what will be the profit percentage?
Answer & explanation
Correct answer: option 4
15% of the marked price of an item = 25% of its cost price
\(\frac{MP}{CP}\) = \(\frac{25}{15}\)
Discount = 25% on MP
Selling price = 75% of MP = 75% of 25 = 18.75
Profit = 18.75 - 15 = 3.75
Profit% = 3.75 × \(\frac{100}{15}\) = 25%