The sale-to-cost price ratio of an article is 7:5. What is the ratio of its profit to its cost price?
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Answer: E. None of these
Explanation
A sale to cost price ratio of seven to five implies a profit of two parts on a cost of five. Forming the ratio of profit to cost price produces two to five based on the given proportional parts. Since two to five is absent from the provided choices, the correct selection must be none of these. Profit equals the selling price minus the cost price in standard commercial transactions. Profit percentage or ratio is always calculated relative to the original cost price. Multiple choice questions include none of these when the exact calculated answer is omitted.
Retail merchants track profit to cost ratios to evaluate inventory performance and markup strategies. Financial analysts review profit margins relative to production costs for corporate profitability reports. Business owners calculate return on investment using cost and selling price proportions. Option a inverts the profit and cost terms incorrectly to form an improper ratio. Option b reverses the numerator and denominator representing cost relative to profit instead. Option c uses the selling price instead of the cost price in the denominator position.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
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