A person sold an article at 20% profit on the selling price. Afterwards, when the cost price reduced by 10%, then he also reduced the selling price by 10%. This percentage of profit on cost price will be:

A. 25%

B. 22%

C. 21.5%

D. 20%

Solution(By Examveda Team)

According to question profit on selling price so , (0.20) =1-(CP/SP),

CP =0.8SP, now 10% CP reduced,

So now CP =.72SP and selling price is 0.90SP (10% on SP), now profit on cost price is (0.90SP -0.72SP)/0.72SP =25%.