If profit is 20% of the selling price, then profit is what percent of the cost price?
Answer & explanation
Correct answer: option 2
Profit is 20% on the selling price
SP : Profit = 5 : 1
Then CP = 4
Profit on CP = 1 × \(\frac{100}{4}\) = 25%
If profit is 20% of the selling price, then profit is what percent of the cost price?
Correct answer: option 2
Profit is 20% on the selling price
SP : Profit = 5 : 1
Then CP = 4
Profit on CP = 1 × \(\frac{100}{4}\) = 25%