In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price… · ABC26GN2641

Subject: General Aptitude · Chapter: Profit and Loss

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?

(a)30\%

(b)70\%

(c)100\%

(d)250\%

Answer

Answer (as printed): B

Explanation

Let C.P. $=₹ 100$. Then, Profit $=₹ 320$, S.P. $=₹ 420$. New C.P. $=125 \%$ of $₹ 100=₹ 125 ;$ New S.P. $=₹ 420$. Profit $=₹(420-125)=₹ 295$. $$\text { ∴ } \text { Required percentage }=\left(\frac{295}{420} \times 100\right) \%=\frac{1475}{21} \% \approx 70 \% .$$

Explanation as extracted from the printed page; notation may be imperfect.

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