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?
- AOption (a)
30%
- BOption (b)
70%
- COption (c)
100%
- DOption (d)
250%
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Correct answer
70%
Why this answer is correct
Given
In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant.
Concept used
Profit and loss
Calculation
Let the CP be Rs.100
Profit = 320% of 100
Profit = Rs.320
SP = Rs.(320 + 100)
SP = Rs.420
Cost price increases by 25%
Cost price = Rs.125
Selling price = Rs.420
Profit = Rs.(420 - 125)
Profit = Rs.295
Required percentage = \(\frac{{295}}{{420}} \times 100\)
∴ 70% aprrox