Ona mobile the profit earned is 250 percent of the cost price. If the cost price increases by 50 percent but the selling price remains same, then what is the new profit percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 133.33 percent.
The original cost price of the mobile = CP
The SPelling price = SP
The profit is the difference between the Selling price and the cost price = ( SP - CP)
Profit = 250% × CP = 250 / 100 × CP= 2.5CP
The SPelling price is:
⇒ SP = CP + Profit = CP + 2.5CP = 3.5CP
⇒ CPnew = CP + 0.5CP = 1.5CP
⇒ New Profit = SP - CPnew = 3.5CP - 1.5CP = 2CP
⇒ Profit Percentage = New Profit / New Cost Price × 100 = 2CP / 1.5CP × 100 = 2 / 1.5 × 100 = 4 / 3 × 100 = 133.33%