Multiple choice

In a certain store, the profit is $320$% of the cost. If the cost increases by $25$% but the selling price remains constant, approximately what percentage of the selling price is the profit?

  1. $30$%
  2. $70$%
  3. $100$%
  4. $250$%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let Cost = 100. Profit = 320% of 100 = 320. Selling Price = 100 + 320 = 420. New Cost = 125. Selling Price remains 420. New Profit = 420 - 125 = 295. Profit as % of Selling Price = (295 / 420) * 100 = 70.23%, which is approximately 70%.

AI explanation

Let the cost price be 100, making the original profit 320 percent of 100, which is 320; therefore, the selling price is 100 plus 320, equaling 420. The cost increases by 25 percent, making the new cost price 125. The new profit amount is 420 minus 125, equaling 295; finding what percentage of the selling price this represents uses the formula (profit divided by selling price) multiplied by 100. Calculating this gives (295 divided by 420) multiplied by 100, which is approximately 70 percent.

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