Multiple choice

Directions: Select the correct alternative from the given choices. The ratio of the selling prices of two articles, A and B, is 2 : 3. If the percentage profit realized on selling the articles A and B are 25% and 20% respectively, then find the ratio of the cost price of A to that of B.

  1. 3/2

  2. 7/18

  3. 9/16

  4. 16/25
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SP_A/SP_B = 2/3. Profit_A = 25%, Profit_B = 20%. CP_A = SP_A / 1.25 = 0.8 * SP_A. CP_B = SP_B / 1.20 = (1/1.2) * SP_B = (5/6) * SP_B. Ratio CP_A/CP_B = (0.8 * SP_A) / ((5/6) * SP_B) = (4/5 * 2) / (5/6 * 3) = (8/5) / (15/6) = (8/5) * (6/15) = 48/75 = 16/25.

AI explanation

Let the selling prices of articles A and B be 200 and 300 based on their 2:3 ratio to avoid fractions. The cost price of A is found using the formula CP = SP / (1 + Profit%), so for article A it is 200 / 1.25 = 160. For article B, the cost price is 300 / 1.20 = 250. The ratio of the cost price of A to the cost price of B is therefore 160 / 250, which simplifies to 16/25.

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