Multiple choice

For a certain product, a dealer gets 50% profit. Due to increase in production cost, the cost price of the product increases by 25%. If the dealer keeps the same selling price, then his profit percent is

  1. 12.5%

  2. 17.5%

  3. 20%

  4. 22.5%

  5. 25%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100, SP = 150. New CP = 125. SP remains 150. Profit = 150 - 125 = 25. Profit % = (25/125) * 100 = 20%.

AI explanation

Let the initial cost price of the product be Rs. 100. Since the dealer gets a 50% profit, the selling price is Rs. 150. Due to an increase in production cost, the new cost price becomes 125, which is 25% more than the initial cost price. Keeping the selling price the same at Rs. 150, the new profit is Rs. 25. Using the profit percentage formula, the new profit percentage is (25 / 125) multiplied by 100, which equals 20%.

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