There is a profit of 10% when an item is sold at $\frac{5}{6}$ of its actual selling price. What will be the profit percentage on the cost price when the item is sold at its actual selling price?
Answer & explanation
Correct answer: option 2
When the item is sold at $\frac{5}{6}$ of its actual selling price
\(\frac{SP}{Actual \; SP}\) = \(\frac{6}{5}\)
110% of CP = 5
100% of CP = 4.54
Actual selling price = 6
Profit it is sold at actual selling price = (6-4.54) × \(\frac{100}{4.54}\) = 32%