The profit gained on selling a certain product is 320% of the cost. If the cost increases by 10% but the selling price remains constant, then what percentage of the selling price is the profit (correct to one decimal place)?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 73.8%.
Let the cost price be 100x
Profit = 320% of 100x = 320x
Selling price = Cost price + Profit
⇒ Seling price = 100x + 320x = 420x
Cost price is increased by 10% = 110% of 100x = 110x
⇒ New profit = 420x - 110x = 310x
Required profit percentage = (310x/420x) × 100 = 73.8%