Question

In a certain store, the profit is 320% of the cost, If the cost increase by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit ?
1. 70%
2. 80%
3. 250%
4. 50%

Answer 1

Correct Answer - Option 1 : 70%

Given 

The profit percentage = 320% of CP

Formula Used 

Profit% = (Profit/CP) × 100

Calculation

Let the cost price be 100x 

so, Profit = 320% of 100x = 320x

then, selling price = 420x

Now, cost price increased by 25% 

New, Cost price = 125x 

New Profit = 420x - 125x = 295x 

Profit percent on selling price = (295x/420x) × 100 = 70% 

∴ The required percentage is 70%