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

A) 70% B) 80% C) 90% D) None of above

Answer 1

Answer:

70%.

Let the initial cost price be 20, then with profit of 320%, the profit is 64 and hence selling price is 84.

Now with increase in cost by 25%, the revised cost price is 25. With the same selling price of 84, the profit is 59.

The answer to what percentage of profit is the selling price would be (59/84)×100 ; which roughly equals to 70%.

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Answer 2

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.

= 295/420 x 100%

= 70%