If cost price of 5 cars is equal to selling price of 4 cars. Find the percentage of profit or loss ?
A. 10% profit
B. 10% Loss
C. 25% Profit
D. 25% Loss

Options

A. C
B. D
C. A
D. B

Answer

To solve the problem, we need to find the percentage of profit or loss based on the relationship between the cost price (CP) and selling price (SP) of the cars.

### Step-by-Step Solution:

1. **Understanding the Relationship**:
We know that the cost price of 5 cars is equal to the selling price of 4 cars. We can express this relationship mathematically:
\[ CP \text{ of } 5 \text{ cars} = SP \text{ of } 4 \text{ cars} \]

2. **Let’s Assign Variables**:
Let the cost price of one car be \( CP \) and the selling price of one car be \( SP \).
Therefore, we can write:
\[ 5 \times CP = 4 \times SP \]

3. **Finding the Ratio of CP to SP**:
Rearranging the equation gives us:
\[ \frac{CP}{SP} = \frac{4}{5} \]

4. **Calculating Profit or Loss**:
From the ratio \( \frac{CP}{SP} = \frac{4}{5} \), we can see that:
- If \( CP = 4 \) units, then \( SP = 5 \) units.
- This indicates that for every 4 units spent (cost), we receive 5 units (selling price).

5. **Calculating Profit**:
The profit can be calculated as:
\[ \text{Profit} = SP - CP = 5 - 4 = 1 \text{ unit} \]

6. **Calculating Profit Percentage**:
To find the profit percentage, we use the formula:
\[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{CP} \right) \times 100 \]
Substituting the values:
\[ \text{Profit Percentage} = \left( \frac{1}{4} \right) \times 100 = 25\% \]

7. **Conclusion**:
Since we have a profit of 25%, the answer is:
\[ \text{Option C: 25% Profit} \]