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If the cost price of 20 articles is equal to the selling price of 25

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pzazz12
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If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   Updated on: 18 Feb 2019, 06:00
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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
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C

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.
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   Updated on: 19 Oct 2010, 11:30
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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.

Originally posted by KarishmaB on 19 Oct 2010, 07:18.
Last edited by KarishmaB 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] New post   19 Oct 2010, 06:43
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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.
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   18 Oct 2016, 15:14
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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] New post   26 Nov 2018, 03:25
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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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   02 Apr 2020, 15:34
praba1130 wrote:
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.







Why profit or loss is measured against cost price and not sell price, as it is usually in finance?
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   09 Apr 2020, 04:13
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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


Solution:

We can create the equation:

20C = 25R

4C = 5R

0.8C = R

Thus, percent profit or loss is:

(0.8C - C)/C = -0.2 = 20% loss

Alternate Solution:

Let’s say the cost of 20 articles = the selling price of 25 articles = 100 dollars. Then, each article costs 100/20 = 5 dollars and sells for 100/25 = 4 dollars. We see that 4 is (5 - 4) / 5 * 100 = 20% less than 5.

Answer: C
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   09 Apr 2020, 04:19
C(20)=S(25)
S/C =4/5
L/C =1/5
20 % loss
Option C is the answer

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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   09 Apr 2020, 12:02
As given in the question, 20*CP = 25*SP, which gives us the ratio of SP to CP as 4:5, which is a loss of 20%.
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   17 Jun 2020, 08:09
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1 - 20/25 = 1/5 = 20%
Option C - 20% loss
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   22 May 2021, 04:47
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Solution:

Let the Cost Price of 1 article be CP and Selling Price of 1 article be SP

=> 20*CP =25*P

=>CP/SP =25/20 = 5/4

=>CP>SP

=>Loss = CP-SP/CP *100

=5-4/5 *100

=20% Loss (option c)

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If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   07 Jun 2021, 08:32
Selling Price of 25 articles be LCM of 25 and 20 = 100 dollars

Cost Price 20 articles = Selling Price of 25 articles = 100

25 articles --------- 100 dollars
1 article ----------- 100/25 = 4 dollars (SP)

20 articles ---------100 dollars
1 article ------------100/20 = 5 dollars (CP)

Profit % = SP - CP/CP *100 = 4-5/5*100 = -20% (C)
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   14 Dec 2021, 23:31
I'd appreciate some feedback on my method:

My reasoning to eliminate the profit options was:

if the amount lost by purchase of 20 items = amount obtained by sale of 25 items - it means that CP> SP
we would need to sell more items to get the amount we lost when we purchased 20 items

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

25 * SP = 20 * CP
SP / CP = 20/25
SP/CP = 4/5

P% = 4-5/5*100
-1/5*100
= -20% or 20% loss
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Re: If the cost price of 20 articles is equal to the selling price of 25 [#permalink] New post   22 Sep 2023, 05:09
Hi! Why is the % loss calculaed over cost? Shouldn't it ve over S? I've never seen any company calculate net income/gross profit margins over costs.
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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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