In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit ?
A. 30%
B.70%
C. 100%
D. 250%
Answer : B .70%
Explanation:
Let Cost Price (C.P) = Rs. 100.
Then, Profit = Rs. 320, Selling Price (S.P) = Rs. 420.
New Cost Price (C.P) = 125% of Rs. 100 = Rs. 125
New Selling Price (S.P) = Rs. 420.
Profit = Rs. (420 – 125) = Rs. 295.
Required Percentage = ( (295/420) x 100 )%
= 70% (approximately).
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