If the selling price of an article is doubled, then the profit becomes four times. What was the original profit percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 50%.
Given that
The selling price (S) of an article is doubled,
The profit (P) becomes four times greater.
According to the question
The new selling price = 2S
The new profit value = 4P
C.P. = S.P. - Profit
Profit % = (Selling price- Cost price)/Cost price× 100
⇒ 2S - 4P = S - P
⇒ S = 3P
⇒ C.P = 3P - P = 2P
⇒ Profit % = [(3P - 2P)/2P] × 100 = 50%