Correct Answer - Option 1 : 100%
CALCULATION:
Let the cost price and selling price be x and y respectively.
∴ Original profit = y - x ----(1)
But due to the fall in the leather jacket supply,
⇒ 3(y - x) = 2y - x
⇒ 3y - 3x = 2y - x
⇒ y = 2x
From (1), Original profit = Rs.x
∴ Original Profit% = (Original Profit/Cost Price) × 100
⇒ Original Profit% = (x/x) × 100
⇒ Original Profit% = 100%
In this question, the relation between profit% and the selling price is the key to solving the problem.
Profit% = [(y - x)/x] × 100