If an article gives a profit of $20\%$ on cost price, then the profit percentage calculated on selling price is:

Question

If an article gives a profit of $20\%$ on cost price, then the profit percentage calculated on selling price is:

Option A

$15\%$

Option B — Correct answer

$16\frac23\%$

Correct choice.

Option C

$18\%$

Option D

$20\%$

Explanation

Take CP $=100$. Profit $=20$, so SP $=120$. Profit as a percent of SP $=\frac{20}{120}\times100=16\frac23\%$.

Chapter Mock 4: Profit and Loss