In a store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains the same, what percent of profit could be made on the selling price?

In a store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains the same, what percent of profit could be made on the selling price?

A 30%

B 70%

C 100%

D None of these

Solution

Correct Answer: Option B

Let C.P.= Tk.100.

Then, Profit = Tk.320,

S.P. = Tk.420.

New C.P. = 125% of Tk.100 = Tk.125

New S.P. = Tk.420.

Profit = Tk.(420 - 125) = Tk.295

Required percentage = (295/420) * 100

= 70%(approx)