Question

By selling an article at 20% more than the list price, there is a profit of 50%. What is profit at the original list price?
25%
30%
50%
None of the above​

Answer 1

Answer:

25%, top option

Step-by-step explanation:

Given:

Cost- c, List price- l, Profit- p

l+20%=c+50%

============

l=c+p list price is equal to cost + profit

• l+20%= l*1.2= (c+p)*1.2 --- list price increased by 20%
• c+50%= c*1.5  --- profit of 50%

As they are equal we have:

• (c+p)*1.2=1.5c
• 1.2p=0.3c
• p/c=0.3/1.2
• p/c=1/4 = 0.25 ---> 25%  profit is 4th of cost price

Initial profit was 25%

Correct option is the top one