Question

In a certain store, the profit is 320% of the cost. if the cost increase by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit?
a. 30%

Answer 1

ANSWER.
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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.

$\frac{295}{420 } \times 100 = \frac{1475}{21} = 70$

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%