If a merchant makes a profit of 20% based on the selling price of an

Question

If a merchant makes a profit of 20% based on the selling price of an article, what percent does the merchant makes on the cost?

A. 15
B. 20
C. 25
D. 40
E. None of These

iPinnacle · Answer

Let x is the cost and y is the selling price

So if y=100, x=80
so (20/80)*100=25%

Ans C

smartmundu · Answer

Let say Selling price will be Rs100,

20% profit means Cost price will be Rs80 and Rs20 is profit

now we have to find what percent of 80 will be 20 : X% * 80 = 20

X will be 25%

gurmukh · Answer

P/S=20/100
P/C=20/80
25 %
Option C is the answer

Posted from my mobile device

Saiharish98 · Answer

S-C
----*100=20
S
So 5s-5c=s
S:c=5:4
So s=5x c=4x
(X/4x) 100=25

Posted from my mobile device

Feb2024 · Answer

Bunuel   KarishmaB   ScottTargetTestPrep   MartyMurray

Hello Experts! What does "profit on Selling price" mean and how is it different from "profit on Cost Price"? Isn't "profit on cost price" what we are generally concerned about?!

Can you explain with a simple example?

Thanks in advance!

MartyMurray · Answer

The profit on the selling price is what's generally termed the "profit margin."

It's calculated as the percentage of the selling price that is represented by profit.

So, for instance, if an item costs a store $50 and the store sells it for $100, the profit margin is  \frac{$100 - $50}{100} = 0.50 , or 50%.

pierjoejoe · Answer

PROFIT/REVENUES = 20%

(REVENUES - COST) / REVENUES = 20%

COST/REVENUES = 1-20%

we want the profit on the cost --> PROFIT/COST = (REVENUES-COST)/COST = (REVENUS/COST) -1
COST/REVENUES = 1-20% 
(REVENUS/COST) = 1/(1-20% ) = 5/4

PROFIT/COST = (REVENUES-COST)/COST = 5/4-1 = 1/4 = 25%

findingmyself · Answer

The question is asking for Profit as a % of COST PRICE

Profit=SP-CP

From question: Profit P= 20% SP OR P=SP/5

Substituting in above equation

SP/5=SP-CP
SP=(5/4)CP

Re-substituting back in the Initial equation,
Profit=(5/4)CP-CP=CP/4--->25%

If a merchant makes a profit of 20% based on the selling price of an

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

If a merchant makes a profit of 20% based on the selling price of an

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards