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Multiple choice

20\% profit on cost price. Is what \% profit on selling price?

  1. $25\%$
  2. $16\%$
  3. $16.66\%$
  4. $20\%$
  5. $10\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If CP = 100, then 20% profit means SP = 120. Profit on CP is 20. Profit on SP = 20/120 = 1/6 = 16.67%. Option A (25%) assumes profit/CP relationship. Option D (20%) confuses CP and SP bases.

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