The ratio of the cost price to the selling price of an article is 5 : 7. What is the profit percent?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 40%
Take the cost price as 5 parts and the selling price as 7 parts; profit % is the profit divided by the cost.
Profit \(=7-5=2\) parts
Profit percentage \(\displaystyle =\frac{2}{5}\times100=40\%\)
The profit is 40%.
Why the other options are incorrect
Option (1) 140% — Incorrect. This is the SP as a percentage of the CP, not the profit percentage.
Option (3) \(28\frac{4}{7}\%\) — Incorrect. This divides the profit by the SP (7 parts); profit % is worked out on the CP.
Option (4) \(71\frac{3}{7}\%\) — Incorrect. This is the CP as a percentage of the SP, not the profit percentage.