Question

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?

Answer 1

Answer is 70%

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. = Old S.P. = Rs. 420.
=>Profit = Rs. (420 - 125) = Rs. 295.

Hence,required percentage = 295/420 x 100 = 70%