Multiple choice

The profit percent earned by a shopkeeper after selling an article is equal to 80% of its selling price. If the selling price of the article increases by 20% and its cost price increases by 40%, then what will be the new value of profit percent for the shopkeeper?

  1. 338.57%

  2. 328.57%

  3. 301.25%

  4. 278.25%

  5. 251.41%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let SP = 100. Profit = 80% of 100 = 80. CP = SP - Profit = 100 - 80 = 20. New SP = 100 * 1.2 = 120. New CP = 20 * 1.4 = 28. New Profit = 120 - 28 = 92. New Profit % = (92 / 28) * 100 = 328.57%.

AI explanation

Let the selling price be 100 rupees, so the profit is 80% of 100, which is 80 rupees, making the cost price 20 rupees. The new selling price increases by 20% to 120 rupees, and the new cost price increases by 40% to 28 rupees. The new profit is 120 minus 28, equaling 92 rupees, so the new profit percentage is (92 divided by 28) multiplied by 100, which equals 328.57%. The result is 328.57%.

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