Question

A merchant earns 25% profit on selling price. what would be this percentage of profit on cost price.​

Answer 1

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Let's see what we have here. A shopkeeper sold Item X for a his selling price (SP).

Let SP = x

Since the question says that Profit is 25% of the selling price, we have:

Profit = 25% SP = 0.25x

Now, we already know that:

Profit = SP - Cost

This part is the catch. To find out how much Item X originally cost,

Cost = SP - Profit = x - 0.25x = 0.75x

Now that we know the original cost of Item X, we can easily calculate the Real profit % using this formula:

= (Profit/Cost)*100

= (0.25x/0.75x)*100

= 33%

And there you have it. Hope I explained it clear enough.

Answer 2

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A merchant earns 25% profit on selling price. what would be this percentage of profit on cost price.

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This can be understood as below:

If the Selling price is Rs.100

Profit will be 25 % i.e. Rs.25

Hence the cost will become Rs.75 i.e. (Rs.100 - Rs. 25)

Therefore the profit on cost will become = Profit / Cost *100

Profit on cost = Rs.25 *100

Rs.75

Profit on cost will be = 33.33%

HOPE THIS HELPS ❤️☺️

BE BRAINLY ⚡☃️