Multiple choice

On selling an article the profit is 40% of the cost price. If the cost price increases by 25% but the selling price remains constant then find the change in profit%.

  1. 12%

  2. 24%

  3. 28%

  4. 52%

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Profit = 40%, so SP = 140. New CP = 125 (25% increase). New profit = 140 - 125 = 15 on CP 125, which is 12%. Profit decreased from 40% to 12%, a change of -28 percentage points (not 28% decrease).