Question : A shopkeeper buys pencils from a wholesaler at Rs. 20 for 40 pencils. He sells those pencils at Rs. 20 for 20 pencils. What was his profit or loss percentage?
Option 1: 50% Profit
Option 2: 80% Loss
Option 3: 100% Profit
Option 4: 20% loss
Correct Answer: 100% Profit
Solution :
Cost price of a pencil = $\frac{20}{40}=0.5$
Selling price of a pencil = $\frac{20}{20}=1$
Profit = Selling price – Cost price
= 1 – 0.5
= 0.5
Profit percentage = $\frac{\text{Selling price - Cost price}}{\text{Cost price}}\times100$
= $\frac{1 - 0.5}{0.5}\times100$
= $\frac{ 0.5}{0.5}\times100$
= 100%
Hence, the correct answer is 100% profit.
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