If the selling price of 16 items is the same as the cost price of 20 items, then there is a

JAMB Mathematics 2023 59 views

If the selling price of 16 items is the same as the cost price of 20 items, then there is a

  1. 20% loss
  2. 25% gain ✓
  3. 25% loss
  4. 20% gain

Explanation

Let the cost price of one item be C. The cost price of 20 items is 20C. The selling price of 16 items equals this same amount, so selling price of 16 items equals 20C. Find selling price of one item: 20C divided by 16 equals 5C over 4 equals 1.25C.

Compare selling price to cost price: selling price is 1.25C while cost price is C. The difference is 0.25C, which represents profit. Calculate percentage gain: profit divided by cost price times 100 equals 0.25C divided by C times 100 equals 25 percent.

Since selling price is higher than cost price, this is a gain, not a loss. The merchant makes a 25 percent profit on each item sold.

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