A trader sells an article at 20% profit. If he buys it at half of the cost price and sells at the same selling price as before, then what will be the profit percentage?
Answer & explanation
Correct answer: option 4
If the cost price is 100 units,
At 20% profit, selling price = 120 units
Now, if cost price is halved,
New cost price = 50 units and selling price remains 120 units,
Profit = 120 - 50 = 70 units
Profit % = $\frac{70}{50}$ x 100 = 140%