A tea seller used to make 50% of profit by selling tea at Rs9 per cup. When the cost of ingredients increased by 25%, he started selling tea at 10 per cup. what is his profit percentages now ?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 33
let the CP of the cup is = 100%
SP of cup = 9 Rs
Profit is 50% then SP = 150% = 9 Rs
1% = 9/150
CP = 100 × 9/150 = 6 Rs.
If CP has Increased by 25% then new CP = 6× 125/100 = 7.5 Rs.
New SP = 10 Rs.
Profit % = 100× (10-7.5)/7.5 = 100/3 = 33.33 %