What is the actual profit when the profit on selling price is 25%?

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Official Paper 17: Held on 5th Nov 2020 Shift 1

Option 1 : 33.33%

Formula used:

Profit % = Profit/CP × 100

Profit = SP – CP

Here, SP and CP are selling price and cost price respectively

Calculation:

Let the selling price be 100x

Profit = 25% of 100x = 25x

Now, Profit = SP – CP

⇒ 25x = 100x – CP

⇒ CP = 75x

Now, Profit % = Profit/CP × 100

⇒ 25x/75x × 100 = 100/3% = 33.33%

∴ The actual profit is 33.33%