I make a profit of 20% by selling an article. what would be the profit percent if it were calculated on the selling price instead of the cost price?

Question: I make a profit of 20% by selling an article. what would be the profit percent if it were calculated on the selling price instead of the cost price?

One of the common questions that many business owners have is how to calculate their profit margin based on different methods. In this blog post, we will look at an example of how to calculate the profit percent using the cost price and the selling price of an article.

Let's say you sell an article for $120 and you make a profit of 20% by doing so. This means that your cost price is $100, since 20% of $100 is $20, which is your profit amount. To find the profit percent based on the cost price, you simply divide the profit amount by the cost price and multiply by 100. In this case, it would be ($20 / $100) x 100 = 20%.

But what if you want to know what your profit percent is based on the selling price instead of the cost price? In that case, you need to use a different formula. You need to divide the profit amount by the selling price and multiply by 100. In this case, it would be ($20 / $120) x 100 = 16.67%.

As you can see, the profit percent based on the selling price is lower than the profit percent based on the cost price. This is because the selling price is higher than the cost price, so the same profit amount represents a smaller percentage of it. This is important to keep in mind when comparing different methods of calculating your profit margin.

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