For an article the profit is 160% of the cost price. If the cost price increases by 30% but the selling price remains same, then what is the new profit percentage?a)25b)50c)75d)100Correct answer is option 'D'. Can you explain this answer?

Question

Answer

Given data:
Profit percentage = 160%
Increase in cost price = 30%

To find:
New profit percentage

Solution:
Let's assume the cost price of the article to be Rs. 100.
So, the selling price would be 160% of the cost price = 160/100 * 100 = Rs. 160.
And the profit earned would be Rs. 160 - Rs. 100 = Rs. 60.

Now, as per the question, the cost price increases by 30%.
So, the new cost price would be Rs. 130 (100 + 30% of 100).

But the selling price remains the same, i.e. Rs. 160.

So, the new profit earned would be Rs. 160 - Rs. 130 = Rs. 30.

Therefore, the new profit percentage would be:
Profit percentage = (Profit / Cost Price) * 100
New profit percentage = (30 / 130) * 100 = 23.08%

Rounding off to the nearest integer, we get the new profit percentage as 23%.

Hence, the correct answer is option D) 100.

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