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A trader increases the SP of his article in the ratio 8: 5. What is his profit percent |
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Answer» Step-by-step explanation:The profit percetage is 33.33% of cost.[i.e.(8-6)/6] , when the profit is expressed in relation to cost. The profit may also be expressed as 25% of Sales i.e. [(8–6)/8]. Both are just DIFFERENT ways of expressing the same value. For example: Say, Selling price=$100 and Cost= $75. Then profit is $25. It can be expressed in two different ways. i.e. $33.33 is the profit for every $100 spent [(25/75)*100] or $25 is the profit for every $100 EARNED. It is a general understanding that “Profit Margin” is expressed in TERMS of Sales/Revenue and “Profit Percentage” of Cost of Goods Sold. |
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