Discussion :: Profit and Loss

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?
Answer : Option B
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 = Rs. (420  125) = Rs. 295.
Required percentage =  \([ \frac { 295 } { 420 } \)  x 100  %]  =  \(\frac { 1475 } { 2 1} \)% = 70% (approximately).  
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