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

Question

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

KarishmaB · Accepted Answer

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.

praba1130 · Answer

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.

law258 · Answer

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%

ScottTargetTestPrep · Answer

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

Manicks · Answer

1 - 20/25 = 1/5 = 20%
Option C - 20% loss

CrackverbalGMAT · Answer

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)

Devmitra Sen
GMAT SME

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

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

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