If the cost price is 80% of the selling price, then what is the profit percent ?

Options

A. a. 20%
B. b. 25%
C. c. 80%
D. d. none of these

Answer

To find the profit percentage when the cost price (CP) is 80% of the selling price (SP), we can follow these steps:

### Step-by-Step Solution:

1. **Assume Selling Price (SP)**:
Let's assume the selling price (SP) is 100 (this is a convenient choice to simplify calculations).

2. **Calculate Cost Price (CP)**:
Since the cost price is 80% of the selling price, we can calculate it as follows:
\[ CP = 80\% \text{ of } SP = 80\% \text{ of } 100 = \frac{80}{100} \times 100 = 80 \]

3. **Calculate Profit**:
Profit is calculated by subtracting the cost price from the selling price:
\[ \text{Profit} = SP - CP = 100 - 80 = 20 \]

4. **Calculate Profit Percentage**:
The profit percentage is calculated using the formula:
\[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{CP} \right) \times 100 \]
Substituting the values we have:
\[ \text{Profit Percentage} = \left( \frac{20}{80} \right) \times 100 \]

5. **Simplify the Calculation**:
\[ \text{Profit Percentage} = \left( \frac{20}{80} \right) \times 100 = \frac{1}{4} \times 100 = 25\% \]

### Final Answer:
The profit percentage is **25%**.

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