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15% of the marked price of an item is equal to 25% of its cost price. If a discount of 25% is given on the sale of the item, then
what will be the profit percentage?
22.5%
20%
17.5%
25%
- Let’s assume the cost price (CP) is $100x$.
- The marked price (MP) is set such that 15% of MP equals 25% of CP.
- Equation: 0.15×MP=0.25×100x.
- Solution: MP=2515×100x=53×100x=166.67x.
- A discount of 25% on 166.67x brings the selling price (SP) to 75% of MP.
- Calculation: SP=0.75×166.67x=125x.
- Profit = SP - CP = 125x−100x=25x.
- Profit Percentage: 25x100x×100=25.
- The correct answer is Option 4: 25%.
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