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If the cost price of 12 pens is equal to the selling price of 10 pens, what is the profit percentage?

1. 10%
2. 20%
3. 25%
4. 16.67%

Correct answer: 20%

Solution

Let the cost price of one pen be 1 unit, so the cost price of 12 pens is 12 units. This equals the selling price of 10 pens, so selling price of one pen is 12/10 = 1.2 units. Profit per pen = 0.2 units, so profit percentage = 0.2/1 × 100 = 20%.

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