Profit Loss Question

Profit Loss is a relatively easy topic and quite often gets tested in these kinds of entrance tests.

Question

If the cost price of 12 articles is the same as the selling price of 10 of those articles, what percent profit does the trader make?
1. 16.66%
2. 20%
3. 25%
4. 16.66% loss
5. 20% loss

Correct Answer: Choice (2) - 20% profit.

Explanatory Answer

Let the cost of 12 articles = Rs.x

Hence, the cost of 1 article = x/12

So, the selling price of 10 articles = Rs.x

Hence, the selling price of 1 article = x/10

The quickest way to solve this question is to assume some value for x. Assume x to be a number that is divisible by 12 and 10.

So, x should be a multiple of 12 and 10. Take x to be 120.

So, the cost of 12 articles = 120. Therefore, the cost of 1 article = Rs.10

The selling price of 10 articles = 120. Therefore, the selling price of 1 article = Rs.12.

The profit on 1 article = Selling price - Cost price = 12 - 10 = Rs.2

Percent Profit = (Profit / CP) * 100 = (2/10)*100 = 20%