Question

In a certain store, the profit is 210% of the cost. If the cost increases by 40% but the selling price remains constant, approximately what % of the selling price is the profit?
1. 48%
2. 55%
3. 50%
4. 45%

Answer 1

Correct Answer - Option 2 : 55%

GIVEN:

In a certain store, the profit is 210% of the cost.

CONCEPT:
Basic concept of Profit and Loss.

FORMULA USED:

Profit on the selling price = [(SP – CP)/SP] × 100

CALCULATION:

Let Cost price = Rs. 100

Then, Profit = Rs. 210,

So,

Selling price = Rs. 310

New CP = 140% of Rs. 100 = Rs. 140

New SP = Rs. 310

Hence,

Profit = Rs. (310 – 140) = Rs. 170

∴ Required percentage = (170/310) × 100 = 54.83 = 55% (Approx.)