Question

In a transaction, the profit percentage is 80% of the cost. If the cost further increases by 20% but the selling price remains the same, how much is the decrease in profit percentage?​

Answer 1

The is a decline of 25% in the actual profile percentage

Step by step Explanation:

We have given that,

profit persentage = 80%

Let's assume that Cost price = 100

profit = cost price × profit percentage/ 100

• => 100×80/100=80

Then the selling price = cost price + profit

• => 100+80=180

And if the cost increases = 20%

Then new cost price = 120

Then new profit = 60

Change in profit = old profit-new profit

• =>80-60=20

Change in profit %= change in profit /old profit ×100

• => 20/80×100=25%

profit percentage decrease by 25%