Selling an article at a certain price yields a 10% profit. If instead the article is sold at double that price, what is the new profit percentage?

Introduction / Context:We relate selling prices to cost via the initial 10% profit. Doubling the selling price doubles revenue, not cost, so the profit percentage changes nonlinearly with respect to cost.

Given Data / Assumptions:

• If selling at price P gives 10% profit, then P = 1.10 * C, where C is cost price.
• New selling price = 2P.

Concept / Approach:Compute 2P relative to C and then determine profit% = (SP − C)/C * 100.

Step-by-Step Solution:P = 1.10C ⇒ 2P = 2.20CNew profit = 2.20C − C = 1.20CProfit% = 1.20C / C * 100 = 120%

Verification / Alternative check:Take C = 100. Then P = 110; doubling gives 220; profit = 120 → 120% of cost.

Why Other Options Are Wrong:20%/40% are far too small; “100” lacks percent and is numerically wrong.

Common Pitfalls:Doubling profit percentage instead of recomputing from cost; forgetting initial 10% defines P relative to C.

Final Answer:120%