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The ratio of the selling price to the cost price of a computer is 7:5. What is the profit percentage?
60%
10%
40%
20%
- The ratio of the selling price (SP) to the cost price (CP) of the computer is given as 7:5.
- This means for every 5 units of cost price, the selling price is 7 units.
- To find the profit percentage, we calculate the profit, which is the difference between SP and CP.
- Profit = SP - CP = 7 units - 5 units = 2 units.
- Profit percentage is calculated as: (Profit/CP) × 100 = (2/5) × 100 = 40%.
- Option 3: 40% is the correct profit percentage.
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