Multiple choice

If profits are $25\%$ of selling price, what is the percentage of profit to cost ?

  1. $20\%$
  2. $25\%$
  3. $30\%$
  4. $33 \, 1/3\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Profit = 25% of SP = 1/4 of SP. So SP = 4 units, Profit = 1 unit. CP = SP - Profit = 3 units. Profit % on CP = (Profit / CP) * 100 = (1/3) * 100 = 33 1/3%.

AI explanation

Let the selling price be Rs 100, so the profit is Rs 25 and the cost price is Rs 75. The profit percentage on the cost price is calculated as (profit divided by cost price) multiplied by 100. Substituting the values gives (25 / 75) * 100 = 33 1/3%.

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