Question
Suppose you have an item on which you earn a profit of
180% over its cost price. If the cost price of the item rises by 12%, but you continue to sell it at the same price, what will be the new percentage of profit you make on the item?Solution
ATQ, Let the cost price be Rs. 100 Selling price = Rs. 100 + 100 × 180% = Rs. 280 After increment, Cost price = 100 × 112% = Rs. 112 Selling price = Rs. 280 Profit =280 – 112 = Rs. 168 Profit percentage = (168/112) × 100 = 150%
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