Question

 I make a profit of 20% by selling an article. What would be the profit percent if it were calculated on the selling price instead of the cost price?​

Answer 1

Answer:

Let's see what we have here. A shopkeeper sold Item X for a his selling price (SP).Let SP = xSince the question says that Profit is 20% of the selling price, we have:Profit = 20% SP = 0.20xNow, we already know that:Profit = SP - CostThis part is the catch. To find out how much Item X originally cost, Cost = SP - Profit = x - 0.20x = 0.80xNow that we know the original cost of Item X, we can easily calculate the Real profit % using this formula:= (Profit/Cost)*100 = (0.20x/0.80x)*100= 25%