On a certain item profit is 120%. If the cost price increases by 10% then what will be the new profit margin (in %) if selling price remains the same?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 100.
Let CP of an item be Rs x
SP of an item = Rs 2.2x
Now, CP of an item = Rs 1.1x
profit % = (2.2x - 1.1x)/1.1x × 100 = 100%