If the profit on a product is 20 percent of its sales price, what perc

Question

If the profit on a product is  20  percent of its sales price, what percent is the profit of the cost price?

A. 20 % 
 B. 25 % 
 C. 30 % 
 D. 33+(\frac{1}{3}) %
 E. 35 %

Hatakekakashi · Answer

SP= 100 
profit = 20

CP = 80

profit/Cp = 20/80 = 1/4 = 25%

(B) imo

aggvipul · Answer

Profit= 1/5 (SP)
SP = CP + Profit
CP= 4/5 SP
Profit/CP = 1/4
 = 25%

BrentGMATPrepNow · Answer

Choosing numbers that satisfy the given conditions (as others above have done) is the best/fastest approach.
Here's a (longer) algebraic approach.

Let SALE price =  x 
So, PROFIT = 20% of x =  0.2x

COST PRICE =  SALE PRICE  -  PROFIT  
=  x  -  0.2x 
=   0.8x

What percent is the  profit  of the  cost price ?   
In other words,  0.2x /  0.8x   = what %?
 0.2x /  0.8x   = 0.2/0.8
= 2/8
= 1/4
= 25%

Answer: B

Cheers,
Brent

JeffTargetTestPrep · Answer

We can let r = sales price and c = cost price and p = the profit. Recall that p = r - c. So we have:

0.2r = r - c

c = r - 0.2r

c = 0.8r

Thus, the profit is p/c = 0.2r/(0.8r) = 1/4 = 25% of the cost price.

Answer: B

MathRevolution · Answer

=>

Let  P, R  and  C  be the profit, the sales price (revenue) and the cost price of the product, respectively.
Then  P = R – C. 
Since  P  is  20 percent of the sales price, the IVY method tells us that  P = 20*(\frac{1}{100})*R. 
So, P = (\frac{1}{5})R  or R = 5P. 
Plugging this into  P = R – C  yields  P = 5P – C  or  C = 4P. 
It follows that  P = (\frac{1}{4})C , and  P  is  25  percent of  C .

Therefore, B is the answer.
Answer B

kapstone1996 · Answer

Rev/Sales = 100
Cost = x
Profit = 20

20/100 = 20%
100 - 20 = 80

20/80 = 25%

Abhishek009 · Answer

SP = 100  ,  P = 20  &  CP = 80

So, % Profit on CP is 20/80*100 = 25%, Answer must be (B)

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If the profit on a product is 20 percent of its sales price, what perc

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If the profit on a product is 20 percent of its sales price, what perc

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