The ratio of the cost price of an article to its selling price is 432 ∶ 612. The profit percentage (rounded off to 2 decimal places) on it is: 

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  1. 41.66%
  2. 40.25%
  3. 42.33%
  4. 38.26%

Answer (Detailed Solution Below)

Option 1 : 41.66%
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Detailed Solution

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Given:

The ratio of the cost price (CP) to the selling price (SP) is 432 ∶ 612.

Formula used:

Profit Percentage = \(\left(\frac{SP - CP}{CP}\right) \times 100\)

Calculation:

Let CP = 432 and SP = 612.

Profit = SP - CP

⇒ Profit = 612 - 432

⇒ Profit = 180

Profit Percentage = \(\left(\frac{180}{432}\right) \times 100\)

⇒ Profit Percentage = \(\left(\frac{180}{432}\right) \times 100\)

⇒ Profit Percentage = 0.4166 × 100

⇒ Profit Percentage = 41.66%

∴ The correct answer is option 1.

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