Discussion Forum



1)

In a certain store, the profit is 320% of the cost. If the cost increases by 25% but, the selling price remains constant, approximately what percentage of the selling price is the profit ?


A) 30%

B) 70%

C) 100%

D) 25%

E) 75%

Answer:

Option B

Explanation:

Let C.P = Rs. 100. Then, profit = Rs. 320, S.P = Rs. 420.

New C.P = 125% of Rs. 100 = Rs. 125;

New S.P = Rs. 420.

Profit = Rs. $(420-125)$ = Rs.$295$.

$\therefore$ Required percentage $=\left(\frac{295}{420}\times 100\right)$%

$=\frac{1475}{21}$ $\approx 70$%.