A vendor buys an item for ₱800 and sells it for ₱1,000. What is the percentage profit based on cost?
Correct answer: B. 25%
Profit = ₱1,000 − ₱800 = ₱200. Percentage profit on cost = 200 ÷ 800 × 100 = 25%. Using the selling price instead (200 ÷ 1,000) gives the wrong answer 20%.
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