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
cost price of 20 articles .........
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- kvcpk
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Let cost price of each article be C and selling price be S.pzazz12 wrote: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
for 20 articles, cost price = 20C and selling price = 20S
for 25 articles, cost price = 25C and selling price = 25S
given that 20C = 25S
C = 5/4 S
S = 4/5 C
which means S<C
hence there should be loss. BDE out.
percentage loss = (4C/5 - C)/C * 100
=C/5 * 100 = 20% loss
pick C.
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- Abhishek009
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pzazz12 wrote: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
Let the Price(Both Selling Price of 25 items and Cost Price of 20 items) be the LCM of 25 & 20 ; this is nothing but 100.
Now we can say that the Selling Price of 25 items is 100
So Selling Price of 1 item is 4
And the Cost Price of 20 items is 100
Cost Price of 1 item is 5
Thus we observe that there is a loss as Cost Price>Selling Price
Loss / item is 1
Hence loss percent is Loss/Cost Price * 100
= 1 / 5 * 100 = 20%
Though this method seems lengthier it will be the quickest and easiest approach if you can adopt it....
Abhishek
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Great solutions - we could also make a quick guess if in a rush.pzazz12 wrote: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
If the cost of 20 articles equalled the selling price of 20 articles, then the seller would break even.
Since the cost of 20 = selling price of 25, the seller is taking a loss.
Guess either A or C.
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- Scott@TargetTestPrep
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kvcpk wrote: ↑Tue Oct 19, 2010 2:58 amSolution:pzazz12 wrote: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
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
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