Question

127 On a certain item profit is 150%. If the cost price increases by 25% what will
be the new profit margin (in %)?
(a) 25
(b) 50
(d) 75
(C) 100
In

Answer 1

Step-by-step explanation:

Let initial CP be Rs. 100

Profit is 150% means

⇒ SP = 100 + (150/100) × (100) = 250

Now if CP increased by 25%

⇒ CP = 100 + (25/100) × 100 = 125

Profit can be given as

⇒ (250 – 125) × 100/125 = 100%

∴ Final profit percentage is 100%