Multiple choice

Ramesh Vastra Bhandaar makes a profit of 60 % of its cost. If the cost increases by 20% but the selling price remains constant, what percentage of the selling price is the profit?

  1. 20 %

  2. 25 %

  3. 33.33 %

  4. cannot be determined
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. Profit = 60, so SP = 160. New CP = 120. SP remains 160. New profit = 160 - 120 = 40. Profit as % of SP = (40 / 160) * 100 = 25%.

AI explanation

Let the cost price be 100, making the initial selling price 160 to gain a 60 percent profit. The new cost price increases by 20 percent to 120, but the selling price remains 160. The new profit is 40, and the required percentage of the selling price is (40 divided by 160) times 100. This equals 25 percent.

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