The ratio between the sale price and the cost price of an article is 7:4. What is the ratio between the profit and the cost price of that article?
3:4
4:3
5:4
7:3
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC CISF-AC-EXE – 2024
This means that for every 4 units of cost price, the sale price is 7 units.
We can represent this by saying SP = 7k and CP = 4k, where k is a positive constant.
Profit (P) is calculated as the difference between the sale price and the cost price:
Profit (P) = Sale Price (SP) – Cost Price (CP)
P = 7k – 4k = 3k.
The question asks for the ratio between the profit and the cost price.
Ratio = Profit : Cost Price = P : CP
Ratio = 3k : 4k.
Since k is a common factor in both terms of the ratio (and k is not zero), we can cancel k:
Ratio = 3 : 4.