Question

If cost price of 25 books is equal to selling price of 20 books, then calculate the gain or loss percent.

• A. 80
• B. 20
• C. 25
• D. 50

Answer 1

Answer:

C. 25

The transaction results in a 25% Gain (Profit).

Step 1: Set up the relationship between Cost Price (CP) and Selling Price (SP)

According to the question:
$\text{Cost Price of 25 books} = \text{Selling Price of 20 books}$
$25 \times CP = 20 \times SP$

Now, find the ratio of $SP$ to $CP$:
$\frac{SP}{CP} = \frac{25}{20} = \frac{5}{4}$

This means if the Cost Price (CP) is 4, the Selling Price (SP) is 5. Since the selling price is greater than the cost price, it is a Gain (Profit).

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Step 2: Calculate the Profit

$\text{Profit} = SP - CP$
$\text{Profit} = 5 - 4 = 1$

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Step 3: Calculate the Gain Percentage

$\text{Gain Percentage} = \left( \frac{\text{Profit}}{CP} \right) \times 100$
$\text{Gain Percentage} = \frac{1}{4} \times 100 = \mathbf{25\%}$