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    Question

    A shopkeeper makes a profit of 75% by selling goods. If

    the cost of goods increases by 15%, but the selling price remains unchanged, approximately how much does his profit percentage decrease?
    A 23% Correct Answer Incorrect Answer
    B 27% Correct Answer Incorrect Answer
    C 39% Correct Answer Incorrect Answer
    D 31% Correct Answer Incorrect Answer

    Solution

    Let the cost price = 100
    Profit = 75% of 100 = 75
    So, selling price = 100 + 75 = 175

    Now cost increases by 15% → new cost price = 100 × 1.15 = 115

    Profit = selling price – new cost price = 175 – 115 = 60

    Profit % = (60 ÷ 115) × 100 ≈ 52.17%

    Earlier profit % = 75%
    Decrease = 75 – 52.17 ≈ 22.83%

    So, the profit percentage decreases by about 23% .

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