Multiple choice

The ratio of cost price and marked price is 2:3 while the ratio of marked price and the selling price is 4:5. Find the percentage profit.

  1. $37.5%$
  2. $24%$
  3. $36%$
  4. $50%$
  5. $87.5%$
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E Correct answer
Explanation

Let CP = 2x, MP = 3x (given 2:3). Also MP:SP = 4:5 so 3x:SP = 4:5, meaning SP = 15x/4 = 3.75x. Profit = SP - CP = 3.75x - 2x = 1.75x. Profit% = (Profit/CP) × 100 = (1.75x/2x) × 100 = 87.5%. The key is finding the common value for MP to link both ratios.

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