A man earns a profit of 20% on selling price. Find the profit percent on the cost price.
Answer & explanation
Correct answer: option 2
Let SP = 100
So, according to the question:
Profit = 20% on SP = 20
CP = 100 - 20 i.e. SP - Profit = 80
So, the profit % on the cost price = \(\frac{ 20}{80 }\) x 100 = 25%