If a person sells goods worth ₹80 for ₹100, what is his profit percentage?

Appeared in: RML MAINS 2025

Explanation

The fundamental formula for profit percentage is (Profit / Cost Price) × 100.
The cost price (C.P.) is the base for calculation, which is ₹80.
The profit is the difference between the selling price (S.P. ₹100) and the cost price (C.P. ₹80), which equals ₹20.
Substituting the values into the formula gives: (₹20 / ₹80) × 100.
This simplifies to (1/4) × 100, which equals 25%.

Option A: This percentage is derived by incorrectly using the Selling Price (S.P.) as the base for the calculation, i.e., (20 / 100) × 100 = 20%.
Option C: A 30% profit on a cost price of ₹80 would mean a profit of ₹24 (0.30 × 80), leading to a selling price of ₹104, which is not the case.
Option D: A 40% profit on a cost price of ₹80 would mean a profit of ₹32 (0.40 × 80), leading to a selling price of ₹112, which is not the case.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Calculation of profit percentage in a business transaction as background academic context rather than a clinical decision trigger.
This question tests basic numeracy and analytical skills, which are essential for various professional fields, including healthcare administration and management.
While not a direct clinical skill, understanding percentages is crucial for tasks like calculating medication dosages, interpreting statistical data in research, and managing budgets in a clinical setting.
What if the question asked for the profit as a percentage of the selling price? In that case, the calculation would be (₹20 / ₹100) × 100 = 20%, which corresponds to option A.

How to Approach the Question

First, identify the key values given in the problem: the Cost Price (C.P. = ₹80) and the Selling Price (S.P. = ₹100).
Next, calculate the absolute profit by subtracting the C.P. from the S.P. (Profit = S.P. - C.P.).
Recall the correct formula for profit percentage, which always uses the Cost Price as the denominator: Profit % = (Profit / C.P.) × 100.
Substitute the calculated profit and the given C.P. into the formula to find the answer.
Be cautious of the common mistake of using the Selling Price as the denominator, which leads to an incorrect answer.

Concept Tested & Keywords

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