Question

Amit fixes the selling price of an article 40% above the cost price. If the cost price goes up by 25% the selling price is also increased by 10%, Then find the profit percentage of him?
1. 24.2%
2. 23.8%
3. 22.8%
4. 23.2%

Answer 1

Correct Answer - Option 4 : 23.2%

GIVEN:
S.P = 40% above C.P

Increase in C.P = 25%

Increase on S.P = 10%

FORMULA USED:

Profit % = Profit/C.P × 100

CALCULATION:

Let the C.P be Rs. 100

∴ S.P = 140% of 100 = Rs. 140

Increased C.P = 125% of 100 = Rs. 125

Increased S.P = 110% of 140 = Rs. 154

∴ Profit = 154 - 125 = Rs. 29

Profit % = 29/125 × 100 = 23.2%

∴ Profit is 23.2%.