Question

A store sold suits for $65 each. The suits cost the store $50 each. The percentage of increase of selling price over cost is

Answer 1

Let the store sell x units of suits.

given, Selling price(SP)=$65

Cost price(CP)=$50

Therefore,

Revenue=quantity*SP

=65x

Expenditure=quantity*CP

=50x

Profit=Revenue-Expenditure

=65x-50x

=15x

Profit %age= Profit/ Expenditure*100

=15x/50x *100

=30%

The percentage of increase of selling price over cost is 30%.