Raman decided to sell a pen to Mohan at 25% profit but incurred a net loss of 16\(\frac{2}{3}\)% because of transportation cost. What percent of selling price is transportation cost?
Answer & explanation
Correct answer: option 4
25% = \(\frac{1}{4}\)
CP = 4, SP = 5
With transportation (-) 16\(\frac{2}{3}\)% = \(\frac{1}{6}\)
CP = 6, SP = 5
Diff in CP is due to transportation charges
Hence transportation cost = 6 - 4 = 2
Required Percentage = \(\frac{2}{5}\) × 100 = 40%