Question

If the profit is 20%, then what will be the ratio of cost price to selling price respectively?

A) 4 : 5 B) 5 : 6 C) 2 : 5 D) 3 : 4

Answer 1

Let cost price be x.
Then selling price will be cost price + profit
Profit = 20% of x = 0.2*x
Therefore selling price is x+.2x = 1.2*x
Ratio of cp/sp = 1/1.2 = 5/6