If the profit on sale price be 20%, the percentage of profit on cost price is

Options

A. 0.2
B. 0.3
C. 0.22
D. 0.25

Answer

To solve the problem of finding the percentage of profit on the cost price when the profit on the sale price is 20%, we can follow these steps:

### Step-by-Step Solution:

1. **Understand the given information**:
We know that the profit is 20% of the selling price (SP).

2. **Convert the percentage to a fraction**:
20% can be expressed as a fraction:
\[ 20\% = \frac{20}{100} = \frac{1}{5} \]
This means that the profit (P) is \(1\) part and the selling price (SP) is \(5\) parts.

3. **Define the relationship between profit and selling price**:
From our fraction, we can say:
\[ P = 1 \quad \text{and} \quad SP = 5 \]

4. **Calculate the cost price (CP)**:
The relationship between selling price, cost price, and profit is given by:
\[ SP = CP + P \]
Rearranging this gives us:
\[ CP = SP - P \]
Substituting the values we have:
\[ CP = 5 - 1 = 4 \]

5. **Calculate the profit percentage on cost price**:
The formula for profit percentage on cost price is:
\[ \text{Profit Percentage} = \left(\frac{P}{CP}\right) \times 100 \]
Substituting the values we found:
\[ \text{Profit Percentage} = \left(\frac{1}{4}\right) \times 100 = 25\% \]

### Final Answer:
The percentage of profit on the cost price is **25%**.

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