In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit ?
Aptitude
Profit and Loss
Choose an option
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A60%
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B50%
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C70%
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D45%
Answer
Correct Answer: 70%
Explanation
Let C.P.= Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420.
New C.P. = 125% of Rs. 100 = Rs. 125 New S.P. = Rs. 420.
Profit = Rs. (420 - 125) = Rs. 295
Required percentage = (295/420) * 100 = 70%(approx)