A supplier sells 20 pencils at the marked price of 16 pens to a retailer. The retailer, in turn, sells them at the marked price. What is the percentage profit or percentage loss of the retailer?

Options

A. Loss 25%
B. Profit 25%
C. Loss 20%
D. Profit 20%

Answer

To solve the problem step by step, we need to determine the cost price (CP) and selling price (SP) for the retailer and then calculate the profit percentage.

### Step 1: Determine the Cost Price (CP) for the Retailer
The supplier sells 20 pencils to the retailer at the marked price of 16 pens.

- Let the marked price of 1 pen be \( MP \).
- Therefore, the cost price for the retailer for 20 pencils is:
\[ CP = 16 \times MP \]

### Step 2: Determine the Selling Price (SP) for the Retailer
The retailer sells the 20 pencils at the marked price of 20 pens.

- Therefore, the selling price for the retailer for 20 pencils is:
\[ SP = 20 \times MP \]

### Step 3: Calculate Profit
Now, we can calculate the profit made by the retailer:
\[ \text{Profit} = SP - CP \]
Substituting the values from Steps 1 and 2:
\[ \text{Profit} = (20 \times MP) - (16 \times MP) = 4 \times MP \]

### Step 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:
\[ \text{Profit Percentage} = \left( \frac{4 \times MP}{16 \times MP} \right) \times 100 \]
The \( MP \) cancels out:
\[ \text{Profit Percentage} = \left( \frac{4}{16} \right) \times 100 = 25\% \]

### Conclusion
The retailer makes a profit of 25%.

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