If selling price of 16 items is same as the cost price of 20 items, then there is a ____________
A. loss of \(20 \%\) B. loss of \(25 \%\) C. gain of \(20 \%\) D. gain of \(25 \%\) E. None of these
Correct Answer: D
Explanation
Let SP of 1 item \(=\$ 1\). Then SP of 16 items \(=\$ 16\) We are given that \(\mathrm{CP}\) of 20 items \(=\$ 16\)P of 1 item \(=\$ 16 / 20\) \(=\$ 0.8\) Profit on every item \(=\mathrm{SP}-\mathrm{CP}\) \(=1-0.8\) \(=0.2\) Gain Percentage \(=\) Gain \(/ \mathrm{CP} \times 100\) \(=0.2 / 0.8 \times 100\) \(=25 \%\)
