A shopkeeper by selling 5 items earns a profit equal to the selling price of one item. What is his/her profit percentage?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 25%
Profit is selling price minus cost price, and the profit percentage is always worked out on the cost price.
Let the selling price of one item be 1, so 5 items sell for 5
Profit = selling price of one item = 1
Cost of the 5 items: \(5-1=4\)
Profit percentage: \(\frac{1}{4}\times100=25\%\)