Multiple choice

If Ashok makes a profit of $25$% on the selling price, what is his profit on cost price?

  1. $20$%
  2. $25$%
  3. $33\dfrac {1}{3}$%
  4. $30$%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If profit is 25% of selling price (SP), then Profit = 0.25 * SP. Since SP = Cost Price (CP) + Profit, we have SP = CP + 0.25 * SP, meaning 0.75 * SP = CP, or SP = (4/3) * CP. Profit on cost is (Profit / CP) * 100 = (0.25 * (4/3) * CP / CP) * 100 = 33.33%.

AI explanation

Since the profit is 25% on the selling price, assume the selling price is 100, making the profit 25. Using the cost price formula, Cost Price = Selling Price - Profit, so the cost price is 100 - 25 = 75. The profit percentage on the cost price is calculated as (25 / 75) * 100 = 33 1/3%. The profit on cost price is 33 1/3%.

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