Multiple choice

Gangu Garments makes a profit of 40% 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. 16.66%

  2. 14.28%

  3. 40%

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

Let Cost = 100. Profit = 40, so Selling Price = 140. New Cost = 120. Selling Price remains 140. New Profit = 140 - 120 = 20. Profit as percentage of selling price = (20 / 140) * 100 = 100/7 = 14.28%.

AI explanation

Assume the initial cost price is Rs. 100, making the selling price Rs. 140 to achieve a 40% profit. The cost increases by 20%, so the new cost is Rs. 120 while the selling price remains Rs. 140, resulting in a new profit of Rs. 20. The required percentage is the profit divided by the selling price, which is (20 / 140) * 100, equaling approximately 14.28%.

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