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Question In a store, the profit is 320% of the cost. If the cost increases by 25% but the selling price (S.P) remains constant, approximately what percentage of the selling price is the profit.

A.            30%

B.            100%

C.            70%

D.            250%

Answer: Option C

Explanation:

Let C.P.= Rs. 100. Then, Profit is = Rs. 320 & S.P. = Rs. 420.

New Cost Price will be = 125% of Rs. 100 = Rs. 125

Now New S.P. is = Rs. 420.

Profit = Rs. (420 - 125) = Rs. 295.

 Required percentage   = (295/420 x 100)%   =  70% (approx).

  

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