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?

Given Data

• Original profit = 320% of cost ⇒ Profit = 3.2C if cost = C
• Original SP = C + 3.2C = 4.2C
• Then cost increases by 25% (to 1.25C) but SP stays at 4.2C
• Required: Profit as a % of the (unchanged) SP

Step 1: New profit after cost increaseNew profit = SP − New cost = 4.2C − 1.25C = 2.95C

Step 2: Profit as a percentage of SPProfit% on SP = (2.95C ÷ 4.2C) × 100 = (2.95 ÷ 4.2) × 100= 0.702380… × 100 ≈ 70.24% of SP

Checks & Common Pitfalls

• The phrase “percentage of the selling price” changes the base; do not compute on cost.
• Cancel C to avoid unnecessary numeric assumptions.
• Round the final percentage to two decimals as requested.

Final AnswerProfit is approximately 70.24% of the selling price.