An article is sold at a profit of 250%. What is the ratio of its cost price to selling price?

Question

Accepted Answer

Let the cost price (CP) be 100 units.
Profit is 250%, so profit amount = 250% of CP = 250 units.
Selling price (SP) = CP + Profit = 100 + 250 = 350 units.
Ratio of cost price to selling price = CP : SP = 100 : 350 = 2 : 7.
However, the options given are 2:5, 5:2, 2:7, and 7:2.
Since 2:7 is an option, the correct ratio is 2 : 7.

Answer

Answer

Answer