Profit, Loss, Markup - XAT 2020 Sample Question

The question given below is a sample practice problem in Profits, Discounts and Markup. It is an Arithmetic Topic and the problem provides an understanding of the core concept related to profits and discounts.

Question

A merchant marks his goods in such a way that the profit on sale of 50 articles is equal to the selling price of 25 articles. What is his profit margin?

1. 25%
2. 50%
3. 100%
4. 66.67%

Correct Answer - 100% profit. Choice (3)

Explanatory Answer

Let the selling price per article be = Re. 1
Therefore, selling price of 50 articles = Rs.50

Profit on sale of 50 articles = selling price of 25 articles = Rs.25.
S.P = 50. Profit = 25. Therefore, CP = 50 - 25 = 25.
.

Correct answer choice (3)