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Manager  Joined: 22 Sep 2010
Posts: 76
If the cost price of 20 articles is equal to the selling price of 25  [#permalink]

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Difficulty:   35% (medium)

Question Stats: 65% (01:26) correct 35% (01:30) wrong based on 244 sessions

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If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?

A. 25% loss
B. 25% profit
C. 20% loss
D. 20% profit
E. 5% profit

Originally posted by pzazz12 on 19 Oct 2010, 05:33.
Last edited by Bunuel on 18 Feb 2019, 06:00, edited 1 time in total.
Updated.
Intern  Joined: 14 Oct 2010
Posts: 4
Re: If the cost price of 20 articles is equal to the selling price of 25  [#permalink]

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Let the cost price of 1 article be \$1.
Therefore, cost price of 20 articles = 20 * 1 = \$20

The selling price of 25 articles = cost price of 20 articles = \$20.

Now, we know the selling price of 25 articles. Let us find the cost price of 25 articles.

Cost price of 25 articles = 25 * 1 = \$25.

Therefore, profit made on sale of 25 articles = Selling price of 25 articles - cost price of 25 articles

= 20 - 25 = -\$5.

As the profit is in the negative, the merchant has made a loss of \$5.

Therefore, % loss = loss/cp * 100
% loss = -5/25 * 100 = 20% loss.
Veritas Prep GMAT Instructor D
Joined: 16 Oct 2010
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Location: Pune, India
Re: If the cost price of 20 articles is equal to the selling price of 25  [#permalink]

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Let cost price of one article be c and selling price of one article be s.
We need to find profit/loss% which is equal to ((s-c)/c) x 100 = (s/c - 1) x 100

Given that 20c = 25s. Then s/c = 4/5
Profit% = (4/5 - 1) x 100 = -20%

Note: It is preferable to use as few variables as possible but in situations where cp of n articles = sp of m articles, it is better to use different variables for clarity.
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Karishma
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Originally posted by VeritasKarishma on 19 Oct 2010, 07:18.
Last edited by VeritasKarishma on 19 Oct 2010, 11:30, edited 1 time in total.
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Re: If the cost price of 20 articles is equal to the selling price of 25  [#permalink]

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Think of it this way...

we can create the following equation --> 20x = 25y

Plug in random values for x and y, such as x=5 & y=4

Then use percentage change eqn to solve for answer: (4-5)/5 = -20%
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Re: If the cost price of 20 articles is equal to the selling price of 25  [#permalink]

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pzazz12 wrote:
If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?

A. 25% loss
B. 25% profit
C. 20% loss
D. 20% profit
E. 5% profit

Lets cost price = C, Selling price = S

4C = 5S, for profit or loss , equation is (C-S)*100/C

ie ., (C-(4C/5))*100/C which gives -20% , which is a 20% loss.
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Please give me +1 kudos if my post helps you a little. It will help me unlock tests. Thanks Re: If the cost price of 20 articles is equal to the selling price of 25   [#permalink] 26 Nov 2018, 03:25
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