Question 52

When an article is sold at a discount of 40% on its marked price, the profit is 25%. What is the ratio of the cost price to the marked price of the article?

Solution

Let the marked price of an article is 100

Then discount = 40% (given)

Selling price = 60% of marked price

i.e; $$\frac{60}{100}\times\ 100=60$$

Profit = 25%

Cost Price = $$\frac{60}{125}\times\ 100=48$$

Required Ratio = 48 : 100

i.e; 12 : 25

Hence ,Option A is correct.

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