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Q51
(CISF/2024)
Economy › Basic Concepts & National Income
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?
Explanation
To determine the ratio between the profit and the cost price, we use the relationship between Sale Price (SP), Cost Price (CP), and Profit.
- The given ratio of Sale Price to Cost Price is SP:CP = 7:4.
- Let the Cost Price (CP) be 4x and the Sale Price (SP) be 7x.
- Profit is defined as: Profit = SP - CP = 7x - 4x = 3x.
The ratio between the profit and the cost price is:
Profit/CP = 3x/4x = 3/4
Therefore, the ratio is 3:4. Option A is the correct answer.
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