Question

A trader increases the SP of his article in the ratio 8: 5. What is his profit percent​

Answer 1

Answer:

Step-by-step explanation:

The profit percetage is 33.33% of cost.[i.e.(8-6)/6] , when the profit is expressed in relation to cost.

The profit may also be expressed as 25% of Sales i.e. [(8–6)/8].

Both are just different ways of expressing the same value.

For example: Say, Selling price=$100 and Cost= $75. Then profit is $25. It can be expressed in two different ways. i.e. $33.33 is the profit for every $100 spent [(25/75)*100] or $25 is the profit for every $100 earned.

It is a general understanding that “Profit Margin” is expressed in terms of Sales/Revenue and “Profit Percentage” of Cost of Goods Sold.