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On a certain item, the profit is 120% of the cost. If the cost increases by 25% and the selling price remains constant, then what percentage of the selling price is the profit (correct to a whole number)?1. 43%2. 39%3. 47%4. 51% |
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Answer» Correct Answer - Option 1 : 43% Given: Profit = 120% of the cost Cost increases by 25% Concept used: Profit = [(SP – CP)/CP] × 100 SP = selling price CP = cost price Calculation: Let CP be Rs. 5x Profit = 5x × 6/5 ⇒ 6x SP = 5x + 6x ⇒ 11x New CP = 5x × 5/4 ⇒ 25x/4 New profit = (11x – 25x/4) ⇒ 19x/4 Required % = (19x/4 ÷ 11x) × 100 ⇒ 19/44 × 100 ⇒ 43.18 ≈ 43% ∴ Required % is 43% |
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