Multiple choice

If profit is 20% of sales price, then it is _____% of cost price.

  1. 20

  2. 16.67

  3. 25

  4. 33.33
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Profit = 20% of sales = 1/5 of sales = 1/4 of cost or Let sales be Rs.100, Profit = Rs.20, Then cost = Rs.80, so profit/cost = 20/80 =1/4 of cost. If you wrongly assume cost = Rs.100, then you may get it 16.67%

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