A merchant buys a radio for 40 dollars and sells it for 50 dollars. What is the merchant's… — Armed Services Vocational Aptitude Battery (ASVAB)

A merchant buys a radio for $40$ dollars and sells it for $50$ dollars. What is the merchant's profit percentage on this item?

The correct answer is

25\%

To find the profit percentage, first determine the total profit by subtracting the cost price (

40

dollars) from the selling price (

50

dollars), which gives a profit of

10

dollars. Then, divide the profit by the original cost price (

\frac{10}{40} = 0.25

) and multiply by

100

to get

25\%

Calculate the profit amount.

50 - 40 = 10

Profit is defined as the difference between the selling price and the cost price.

Calculate the profit percentage.

\frac{10}{40} \times 100 = 25\%

Profit percentage is the profit amount divided by the original cost price, expressed as a percentage.

Profit Percentage

Question