In a transaction, the profit percentage is 48% of the cost. If the cost further increases by 20% but the selling price remains the same, how much is the decrease in the profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 24.67%
Let's assume the CP = 100
After 48% profit, the SP = 100 × 148/100 = 148
Cost price is increased by 20%, new CP = 100 × 120/100 = 120
Sp remain the same, So the new profit percentage = (148 - 120)/120 × 100 = 23.33%
So, decrease in profit Percentage = 48 - 23.33 = 24.67%