Question

The cost price of an article is twice the discount. If the discount is 40% of the selling price, find the profit or loss percent.

• A. 25% loss
• B. 25% profit
• C. 20% loss
• D. 20% profit

Hint:

When dealing with percentages and no absolute values, always assume SP or CP to be 100 to make the calculations straightforward.

Answer 1

The Correct Option is B

Concept: Profit percentage is calculated using the cost price (CP) and selling price (SP). \[ \text{Profit \%} = \frac{SP - CP}{CP} \times 100 \]
Step 1: Assume a value for the Selling Price.
Let Selling Price (SP) = 100.
Discount = 40% of SP = 40.

Step 2: Calculate the Cost Price (CP).
The problem states: CP = \(2 \times \text{Discount}\).
CP = \(2 \times 40 = 80\).

Step 3: Find the profit percentage.
Profit = \(SP - CP = 100 - 80 = 20\). \[ \text{Profit \%} = \frac{20}{80} \times 100 = \frac{1}{4} \times 100 = 25\% \]