CA Foundation Exam > CA Foundation Questions > If the profit is 25% of the cost price then i...
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If the profit is 25% of the cost price then it is
- a)25% of the sales price
- b)33% of the sales price
- c)20% of the sales price
- d)15% of the sales price.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
If the profit is 25% of the cost price then it isa)25% of the sales pr...
Here,, in the given question,,
profit is on cost,, 25% or 1/4
to make it in sales
we know the formula,, sp=cp+prof.
so.., 1/5 I. e. 20%ans
profit is on cost,, 25% or 1/4
to make it in sales
we know the formula,, sp=cp+prof.
so.., 1/5 I. e. 20%ans
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If the profit is 25% of the cost price then it isa)25% of the sales pr...
Concept:
Profit is calculated as the difference between the selling price and the cost price of the product.
Profit percentage is calculated as:
Profit percentage = (Profit/Cost price) x 100
Given that the profit is 25% of the cost price.
Let the cost price of the product be 'x'.
Profit = 25% of x = 0.25x
Selling price = Cost price + Profit = x + 0.25x = 1.25x
Calculation:
We need to find the profit percentage on the selling price.
Let us assume the selling price is 'y'.
Profit = Selling price - Cost price = y - x
Profit percentage = (Profit/Cost price) x 100
= [(y - x)/x] x 100
We know that Selling price = 1.25x
Substituting the value of selling price in the above equation, we get:
Profit percentage = [(1.25x - x)/x] x 100
= (0.25x/x) x 100
= 25%
Therefore, the profit percentage on the selling price is 20%.
Answer: c) 20% of the sales price
Profit is calculated as the difference between the selling price and the cost price of the product.
Profit percentage is calculated as:
Profit percentage = (Profit/Cost price) x 100
Given that the profit is 25% of the cost price.
Let the cost price of the product be 'x'.
Profit = 25% of x = 0.25x
Selling price = Cost price + Profit = x + 0.25x = 1.25x
Calculation:
We need to find the profit percentage on the selling price.
Let us assume the selling price is 'y'.
Profit = Selling price - Cost price = y - x
Profit percentage = (Profit/Cost price) x 100
= [(y - x)/x] x 100
We know that Selling price = 1.25x
Substituting the value of selling price in the above equation, we get:
Profit percentage = [(1.25x - x)/x] x 100
= (0.25x/x) x 100
= 25%
Therefore, the profit percentage on the selling price is 20%.
Answer: c) 20% of the sales price
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If the profit is 25% of the cost price then it isa)25% of the sales priceb)33% of the sales pricec)20% of the sales priced)15% of the sales price.Correct answer is option 'C'. Can you explain this answer?
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