Multiple choice

On a certain article, the profit made is 320% of the cost price. If the cost price of the article is increased by 25% but the selling price is kept constant, then what approximate percentage of the selling price would the profit be?

  1. 30%

  2. 70%

  3. 100%

  4. 250%

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cost = 100, Profit = 320, Selling Price = 420. New Cost = 125. Selling Price remains 420. New Profit = 420 - 125 = 295. Percentage of selling price = (295 / 420) * 100 approx 70.2%.

AI explanation

Let the initial cost price be Rs. 100; since the profit made is 320 percent of the cost price, the profit is Rs. 320 and the constant selling price becomes Rs. 420. The new cost price increases by 25 percent to Rs. 125, making the new profit 420 minus 125, which equals Rs. 295. The required percentage of the selling price that the profit represents is 295 divided by 420 multiplied by 100, which equals 70.23 percent and approximates to 70 percent.

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