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What is the profit or loss percentage if 60% of the cost price and 40% of the selling price are equal?

A) 20% profit
B) 20% loss
C) 40% profit
D) 40% loss

User Riverdale
by
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1 Answer

4 votes

Final answer:

When given that 60% of the cost price is equal to 40% of the selling price, after solving for the ratio of SP to CP, we find that the selling price is 150% of the cost price, indicating a 50% profit. Thus, none of the given options are correct; the answer is a 50% profit.

Step-by-step explanation:

Let's denote the cost price of the item as CP and the selling price as SP. According to the problem, 60% of the cost price is equal to 40% of the selling price, which can be represented as:

0.60 × CP = 0.40 × SP

By simplifying this equation, we can solve for the ratio of SP to CP:

SP/CP = (0.60/0.40) = 1.5

This means the selling price is 1.5 times the cost price, or in other words, SP = 150% of CP. The profit made on the item is the difference between the selling price and the cost price, which would be:

Profit = SP - CP

Since SP is 150% of CP, this means there is a 50% increase from the cost price to the selling price. Hence, the percentage of profit is 50%.

Therefore, none of the provided options A) 20% profit, B) 20% loss, C) 40% profit, D) 40% loss are correct. The correct answer would be a 50% profit.

User JosefAssad
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