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Question

Difficulty: EasyProfit and Loss

A vendor purchases a vintage jacket for 6060 dollars and later sells it at a market for 7575 dollars. What is the vendor's profit percentage on this item?

  1. A
    20%20\%
  2. 25%25\%Answer
  3. C
    125%125\%
  4. D
    2.5%2.5\%

Answer

The vendor's profit percentage is 25%25\%.
The total profit is found by subtracting the cost price (6060) from the selling price (7575), resulting in a 1515 dollar profit. To find the profit percentage, you must divide the profit by the original cost price (15÷60=0.2515 \div 60 = 0.25). Converting the decimal 0.250.25 to a percentage gives 25%25\%.

Step-by-Step Solution

1
Calculate the dollar amount of the profit.
75−60=1575 - 60 = 15
Profit is the difference between the selling price and the cost price.
2
Divide the profit by the original cost price.
1560=0.25\frac{15}{60} = 0.25
Profit percentage is based on the original cost, not the final selling price.
3
Convert the resulting decimal to a percentage.
0.25×100=25%0.25 \times 100 = 25\%
The question asks for the final answer in percentage format.

Key Concept

Calculating profit percentage using the original cost as the base value.
Estimated Time:45s
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Topics

Profit and Loss

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