Multiple choice

A person was selling his article at 25% profit. He increased the SP of the article by 50% when its CP increased by the same percentage. What profit or loss percentage did he make?

  1. 7.5% loss

  2. 25% profit

  3. 4% loss

  4. 2% loss

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100, SP = 125. New CP = 150 (50% increase). New SP = 125 * 1.5 = 187.5. Profit = 187.5 - 150 = 37.5. Profit % = (37.5 / 150) * 100 = 25%.

AI explanation

Let the original cost price be 100, making the initial selling price 125 for a 25% profit. A 50% increase in cost price raises it to 150, and a 50% increase in selling price raises it to 187.5. The new profit is calculated as ((187.5 - 150) / 150) * 100, which equals (37.5 / 150) * 100 = 25%. The profit percentage remains 25%.

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