Anu fixes the selling price of an article at 25% above its cost of production. If the cost of production goes up by 20% and she raises the selling price by 10%, then her percentage profit is (correct to one decimal place):
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 14.6%
Explanation:
Initially profit = 25%
Let the cost price be Rs.100.
Cost price = 100 × 120/100 = Rs.120
Selling price = 125 × 110/100 = Rs.137.5
Profit = 137.5 - 120 = 17.5
Profit percentage = 17.5/120 × 100 = 14.6%