The given question is a GMAT 600 level problem solving question in Profit and Loss. This GMAT sample question tests the concept of finding the percent profit or percentage loss made by a merchant.

Question 10: If the cost price of 20 articles is equal to the selling price of 25 articles, what is the % profit or loss made by the merchant?

- 25% loss
- 25% profit
- 20% loss
- 20% profit
- 5% profit

From INR

Let the cost price of 1 article be $1.

Therefore, cost price of 20 articles = 20 × 1 = $20

The selling price of 25 articles = cost price of 20 articles = $20.

Let us find the cost price of 25 articles.

Cost price of 25 articles = 25 × 1 = $25

Therefore, profit made on sale of 25 articles = Selling price of 25 articles − cost price of 25 articles

⇒ 20 − 25 = −$5

Because the profit is in the negative, **the merchant has made a loss of $5.**

Therefore, % loss = \\frac{\text{Loss}}{\text{Cost Price}}) × 100

% loss = \\frac{\text{5}}{\text{25}}) × 100 = 20% loss.

**The merchant made a loss of 20%**

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