Correct Answer - Option 1 : 140%
Given:
Profit% = 20%
Formula used:
S.P = C.P(100 + P%)/100
Profit% = (Profit/C.P) × 100
Where,
S.P = Selling Price
C.P = Cost Price
P% = Profit%
Calculation:
Let cost price a bike be Rs. 100
C.P = Rs. 100
We know that,
Selling price = 100(100 + P%)/100
⇒ S.P = 100(100 + 20)/100 = 120
According to question if selling price is doubled
New S.P = 2 × 120 = 240
⇒ Profit = 240 - 100 = 140
We know that,
Profit% = (Profit/C.P) × 100
⇒ Profit% = (140/100) × 100 = 140
∴ The profit% of Sumit is 140%.
