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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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