CP SP n P. please HELP

Where are the options?

kartikshah wrote:Where are the options?

This is a data sufficiency problem.

AJWILL wrote:A certain shopkeeper used to calculate his profit percentage on the selling price of the articles rather than on its cost price. What is the profit percentage of the shopkeeper when calculated on the cost price ?
(1) Profit percentage when calculated on selling price of the articles is 20 percent.
(2) The cost price of the article is $50

The key to doing this DS question is understanding that to find the profit percentage, we need SP/CP ratio. With that in mind, let's look at the options.

1. Profit percentage when calculated on selling price of the articles is 20 percent.
=> (SP-CP)/SP = 0.2
=> 1-CP/SP = 0.2

So we can find SP/CP. Sufficient.

(2) The cost price of the article is $50.
This doesn't tell us about the CP/SP ratio. Insufficient.

A is the correct answer.

In case any of you are bemused by the explanation, here's the thing (though not required) in detail. We need to find (SP-CP)/CP = SP/CP - 1.

(SP-CP)/SP = 0.2
=> 1-CP/SP =0.2
=> CP/SP = 1-0.2 = 0.8
=> SP/CP = 1/0.8 = 1.25
=> SP/CP - 1 = 1.25 - 1 = 0.25 or 25%. Hence we have found the answer. So statement 1 is sufficient.

WOW. that was easy i just dint understand what to do with the statement "profit percentage on the selling price of the articles rather than on its cost price"

its crystal clear now..

Thanks a ton eagleeye.

i have a weird request. can u please extend ur kindness n look into my other doubts too(if possible)? i understand ur explanations in a jiffy

Thanks