The ratio of cost price to the marked price of an article is 4:5. If the ratio…
20232025202320242023
The ratio of cost price to the marked price of an article is 4:5. If the ratio of the profit percentage on selling the article to the discount allowed on it is 5:4. what is the profit percentage ?
- A.
12%
- B.
10%
- C.
12.5%
- D.
10.5%
Attempted by 25 students.
Show answer & explanation
Correct answer: C
Answer: 12.5%
Solution outline:
Let cost price (CP) : marked price (MP) = 4 : 5. For simplicity take CP = 400 and MP = 500.
Let the discount be x%. Selling price (SP) after discount = 500 × (100 − x)/100 = 500 − 5x.
Profit = SP − CP = (500 − 5x) − 400 = 100 − 5x.
Profit percentage = (Profit/CP) × 100 = (100 − 5x)/4 percent.
Given that profit percentage : discount = 5 : 4, set ((100 − 5x)/4) : x = 5 : 4. Solving gives x = 10.
Substitute x = 10 into profit percentage: (100 − 5×10)/4 = 50/4 = 12.5%.