A shopkeeper earns a profit of 25% on the selling price. Find his profit percentage on the cost price.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 33.33%
The profit is given as a part of the selling price; profit per cent in the usual sense is a part of the cost price. Take a selling price and work out the cost.
Let the selling price be Rs 100
Profit \(=25\%\) of 100 \(=\) Rs 25
Cost price \(=100-25=\) Rs 75
Profit % on cost \(\displaystyle =\frac{25}{75}\times100=33\frac{1}{3}\%=33.33\%\)
His profit on the cost price is 33.33%.