A shopkeeper makes a profit of 20% based on t… | GMAT Sprint

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PS · Problem Solving

705-805

percent

A shopkeeper makes a profit of 20% based on the selling price of article A; his apprentice notes that he makes X% profit on the cost price. For article B, the shopkeeper makes a profit of 25% based on the selling price, and the apprentice notes that he makes a Y% profit on the item's cost price. What is the value of X:Y?

Answer Choices

Correct answer marked below

2:1

5:4

3:4

Correct

2:3

1:2

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Explanation

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Official Explanation

Official

Assume the selling price is $

100

→ Profit = $

20

→ Cost Price = $

100 -

20

= $

80

Profit on cost price (X%) =

\frac{20}{80} * 100 = \frac{100}{4}

For article B, assume the selling price is $

100

→ Profit = $

25

→ Cost Price = $

100 -

25

= $

75

…

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What this question tests

What it tests

Your ability to apply GMAT math concepts to solve a multi-step problem quickly and accurately. At the 705-805 level, accuracy and speed both matter.

Common trap

Overcomplicating the setup — most GMAT problems reward a direct, organized approach over brute calculation.