The sales price for a product provides a gross profit of 25% of sales price. What is the gross profit as a percentage of cost?
A) 25%.
B) 20%.
C) 33%.
D) Not enough information is provided to determine.

Question

Quizplus · Accepted Answer

If the gross profit is 25% of the sales price, this means that the cost is 75% of the sales price. Therefore, the gross profit as a percentage of cost is calculated as (Gross Profit / Cost) * 100 = (25 / 75) * 100 = 33.33%, which rounds to 33%.

The Sales Price for a Product Provides a Gross Profit