On a certain item, profit is 150%. If the cost price increases by 25%, what will be the new profit margin (in %)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 100
CP = x
SP = 2.5x
Now,
CP = 1.25x
SP = 2.5x
Profit = (2.5x - 1.25x)/(1.25x) × 100
= 100