A
B
C
D
E
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
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
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
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
