In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit?
A. 30%
B. 70%
C. 100%
D. 250%
Explanation:
Let C.P. = Rs. 100. Then, profit = Rs. 320, S.P. = Rs. 420
New C.P. = 125% of Rs. 100 = Rs. 125.
New S.P. = Rs. 420
Profit = 420 – 125 = Rs. 295
Required percentage = 295/420 * 100 = 1475/21 = 70%