GMAT Exam > GMAT Questions > If the cost price of 20 articles is equal to ...
Start Learning for Free
If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?
- a)25% loss
- b)25% profit
- c)20% loss
- d)20% profit
- e)5% profit
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
If the cost price of 20 articles is equal to the selling price of 25 a...
Understanding Cost Price and Selling Price
To determine the profit or loss percentage, we first need to define the cost price (CP) and selling price (SP) based on the information provided.
Given Values
- Cost price of 20 articles = CP of 20 articles
- Selling price of 25 articles = SP of 25 articles
Calculating Cost Price and Selling Price
Let's assume the cost price of one article is 'x'.
- The total cost price of 20 articles = 20x
Now, let’s denote the selling price of one article as 'y'.
- The total selling price of 25 articles = 25y
According to the problem, these two values are equal:
Equation
20x = 25y
Finding Selling Price in terms of Cost Price
To find the relationship between 'x' and 'y', rearranging gives us:
y = (20/25)x = (4/5)x
This means the selling price of one article is 4/5 of its cost price.
Calculating Profit or Loss
To find the profit or loss:
- Since SP < cp,="" there="" is="" a="" />
Loss Calculation
Loss per article = CP - SP
= x - (4/5)x
= (1/5)x
To find the percentage loss:
Percentage Loss
Percentage Loss = (Loss / CP) * 100
= [(1/5)x / x] * 100
= 20%
Conclusion
The merchant incurs a 20% loss on the transaction. Thus, the correct answer is option 'C'.
To determine the profit or loss percentage, we first need to define the cost price (CP) and selling price (SP) based on the information provided.
Given Values
- Cost price of 20 articles = CP of 20 articles
- Selling price of 25 articles = SP of 25 articles
Calculating Cost Price and Selling Price
Let's assume the cost price of one article is 'x'.
- The total cost price of 20 articles = 20x
Now, let’s denote the selling price of one article as 'y'.
- The total selling price of 25 articles = 25y
According to the problem, these two values are equal:
Equation
20x = 25y
Finding Selling Price in terms of Cost Price
To find the relationship between 'x' and 'y', rearranging gives us:
y = (20/25)x = (4/5)x
This means the selling price of one article is 4/5 of its cost price.
Calculating Profit or Loss
To find the profit or loss:
- Since SP < cp,="" there="" is="" a="" />
Loss Calculation
Loss per article = CP - SP
= x - (4/5)x
= (1/5)x
To find the percentage loss:
Percentage Loss
Percentage Loss = (Loss / CP) * 100
= [(1/5)x / x] * 100
= 20%
Conclusion
The merchant incurs a 20% loss on the transaction. Thus, the correct answer is option 'C'.
Free Test
FREE
| Start Free Test |
Community Answer
If the cost price of 20 articles is equal to the selling price of 25 a...
Step 1: Assume a value for cost price
Let the cost price of 1 article be $1.
Therefore, cost price of 20 articles = 20 × 1 = $20
The selling price of 25 articles = cost price of 20 articles = $20.
Therefore, cost price of 20 articles = 20 × 1 = $20
The selling price of 25 articles = cost price of 20 articles = $20.
Step 2: Compute the profit made on sale of 25 articles
Let us find the cost price of 25 articles.
Cost price of 25 articles = 25 × 1 = $25
Therefore, profit made on sale of 25 articles = Selling price of 25 articles − cost price of 25 articles
⇒ 20 − 25 = −$5
Cost price of 25 articles = 25 × 1 = $25
Therefore, profit made on sale of 25 articles = Selling price of 25 articles − cost price of 25 articles
⇒ 20 − 25 = −$5
Step 3: What is the % Profit or Loss?
Because the profit is in the negative, the merchant has made a loss of $5.
Therefore, % loss =
The merchant made a loss of 20%
Therefore, % loss =
The merchant made a loss of 20%
Choice C is the correct answer.
Attention GMAT Students!
To make sure you are not studying endlessly, EduRev has designed GMAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in GMAT.
|
Explore Courses for GMAT exam
|
|
Similar GMAT Doubts
Top Courses for GMATView all
If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer?
Question Description
If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer?.
If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer?.
Solutions for If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?a)25% lossb)25% profitc)20% lossd)20% profite)5% profitCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
|
|
Explore Courses for GMAT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup