Multiple choice

In a utensils store, profit on selling a type of utensil is 260% of the cost. If the cost price of the same type increases by 35% and the selling price of that type remains same, what percentage of the selling price is the profit?

  1. 62.50%

  2. 63.50%

  3. 64.60%

  4. 65.20%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let Cost Price = 100. Profit = 260% of 100 = 260. Selling Price = 100 + 260 = 360. New Cost Price = 100 * 1.35 = 135. Selling Price remains 360. New Profit = 360 - 135 = 225. Profit as % of Selling Price = (225 / 360) * 100 = 62.5%.

AI explanation

Assume the cost price is 100, so a profit of 260% makes the selling price 360. The new cost price increases by 35% to become 135, while the selling price remains 360. The new profit is 360 minus 135, which is 225. The profit as a percentage of the selling price is 225 divided by 360 multiplied by 100, yielding 62.50%.

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