What is the percent profit made on selling an article?

Question

(1) The percent profit, when calculated on the selling price of the article is 20 percent.
(2) The selling price is arrived at by increasing the cost price of the article by 50 percent and then offering a 16.67 percent discount.

pushpitkc · Answer

1. The percent profit, when calculated on the selling price of the article is 20 percent.
 
CP : 80, SP : 100(Profit percentage calculated around the selling price is 20%)
Profit : 20, actual profit percentage is  \frac{20}{80} * 100 = 25 %
CP : 40, SP : 50(Profit percentage calculated around the selling price is 20%)
Profit : 10, actual profit percentage is  \frac{10}{40} * 100 = 25 %  (Sufficient)
 
 2. The selling price is arrived at by increasing the cost price of the article by 50 percent and then offering a 16.67 percent discount.
 
Selling price = 1.5(CP), then offering a 16.67% percent discount(1/6th of the cost)

CP : 80, Marked Price : 120, Discount : 20, Original Selling price : 100
Percent profit is  \frac{20}{80} * 100  = 25%
CP: 160, Marked price : 240, Discount : 40, Original Selling price : 200
Percent profit is  \frac{50}{200} * 100  = 25%  (Sufficient) (Option D)

QuantMadeEasy · Answer

Step 1: Understanding the question 
Let CP = x, SP= y, Profit = y - x
Profit percent = (y - x)/x * 100% = (y/x - 1) * 100%

Step 2: Understanding statement 1 alone 
(1) The percent profit, when calculated on the selling price of the article is 20 percent.
Percent profit, when calculated on the selling price = (y - x) /y = 0.2
1- x/y = 0.2
x/y = 0.8 = 4/5
Hence, Profit percent = (y/x - 1) * 100% = (5/4 - 1) *100% = 25%
Sufficient

Step 2: Understanding statement 2 alone 
(2) The selling price is arrived at by increasing the cost price of the article by 50 percent and then offering a 16.67 percent discount.
When increasing the cost price of the article by 50 percent = 1.5x
Then offering a 16.67 percent discount = (100 - 16.67)% * 1.5x = (5/6) * (3/2) * x = (5/4)x
y = (5/4) x
y/x = 5/4
Hence, Profit percent = (y/x - 1) * 100% = (5/4 - 1) *100% = 25%
Sufficient

D is correct

CrackverbalGMAT · Answer

What is the percent profit made on selling an article?

(1) The percent profit, when calculated on the selling price of the article is 20 percent.
It's given that Profit = 20 % of SP

CP + Profit = SP
CP + 20 % of SP = SP
CP = 80 % of SP

CP =\frac{ 80}{100} *SP

\frac{SP}{CP} = \frac{100}{80} = \frac{10}{8 }= \frac{5}{4}

Let's say S.P = 5x ,then CP = 4x
Profit = SP- CP = 5x -4x = x

Profit % = \frac{ Profit}{CP} * 100  =  \frac{x}{4x} *100  =  \frac{1}{4 }* 100  =  25%

Statement 1 alone is sufficient . Option B,C and E are eliminated.

(2) The selling price is arrived at by increasing the cost price of the article by 50 percent and then offering a 16.67 percent discount.

When CP is increased by 50 % , it becomes 150% of CP i.e  \frac{3}{2}  CP

Also 16.67 percent discount is offered. 
16.67 % = 1/6

SP = \frac{5}{6 }( \frac{3}{2 }CP) = \frac{5}{4} CP

\frac{SP}{CP }= \frac{5}{4}

Similar to the calculations in Statement 1, we will be able to find profit %

Statement 2 alone is sufficient.

Option D is the correct answer

Thanks,

Clifin J Francis,
GMAT SME

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What is the percent profit made on selling an article?

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What is the percent profit made on selling an article?

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