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: (a)

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 = \(\left ( \frac{295}{420} \times 100 \right )\)

= 70%(approx)