If the selling price of an item is increased by 25% and the profit also increases from 20% to 30%, what is the percentage increase in the cost price?
Show answer & explanation
Correct answer: D
Explanation
Assume Old CP = 100
Old SP = 120
New SP = 120 × 1.25 = 150
New CP = 150 / 1.30 ≈ 115.38
Increase = 115.38 − 100 = 15.38
Percentage Increase = 15.38%