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?

Options

• 30%

• 70%

• 100%

• 250%

Answer 1

70%
Explanation :
Let CP = ₹ 100
Then, Profit = ₹ 320, SP = ₹ 420
New CP = 125% of ₹ 100 = ₹ 125
New SP = ₹ 420
Profit = ₹(420 - 125) = ₹ 295
∴ Required percentage

= `(295/420xx100)%=1475/21%`

= 70% (approximately)