Multiple choice

The initial profit percentage on the sale of an item was 55%. If the cost price of the item went up by 24% but the selling price remained the same, what would be the new profit percentage?

  1. 36%

  2. 25%

  3. 28%

  4. 33%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Original SP = 1.55*CP (55% profit). New CP = 1.24*CP. New profit% = (1.55*CP - 1.24*CP) / 1.24*CP = 0.31/1.24 = 0.25 = 25%.

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