Question

A shopkeeper sold an article at 25% profit of selling price. Find the real profit?

Answer 1

Let SP = x

Profit is 25% of the selling price, we have:
Profit = 25% SP = 0.25x

Now, we know that:
Profit = SP - Cost


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

We know,
Profit %
= (Profit/Cost)*100 
= (0.25x/0.75x)*100
= 33%

Answer 2

Let the selling price be 100

so profit = 25% of SP = 25

Cost price = SP - profit
                   = I 00 - 25  = 75

Actual profit % =( profit/cost price) × 100

   = (25 / 75) × 100
  = 33.33 %