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After selling an item, it is found that profit is 35% of the cost price of item. If the cost price is increased by 17.5% keeping the selling price samer, then what approximate percent of selling price is profit?
  • a)
    14
  • b)
    13
  • c)
    12
  • d)
    9
Correct answer is option 'B'. Can you explain this answer?
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Understanding the Problem
After selling an item, the profit is 35% of the cost price (CP). If the CP is increased by 17.5% while keeping the selling price (SP) the same, we need to find the approximate percentage of SP that is profit.
Step 1: Define Variables
- Let the original cost price (CP) be 100 units.
- Therefore, the profit is 35% of CP:
Profit = 0.35 * CP = 0.35 * 100 = 35 units.
- The selling price (SP) can be calculated as:
SP = CP + Profit = 100 + 35 = 135 units.
Step 2: Increase the Cost Price
- Now, if the cost price is increased by 17.5%:
New CP = CP + (17.5% of CP)
= 100 + (0.175 * 100)
= 100 + 17.5
= 117.5 units.
Step 3: Calculate New Profit
- Since the selling price remains the same (135 units), the new profit can be calculated as follows:
New Profit = SP - New CP
= 135 - 117.5
= 17.5 units.
Step 4: Find Profit as a Percentage of Selling Price
- To find the percentage of profit with respect to the selling price, we use the formula:
Profit Percentage = (New Profit / SP) * 100
= (17.5 / 135) * 100
≈ 12.96%.
- This rounds off to approximately 13%.
Conclusion
Thus, the approximate percentage of the selling price that is profit is 13%, which corresponds to option 'B'.
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After selling an item, it is found that profit is 35% of the cost price of item. If the cost price is increased by 17.5% keeping the selling price samer, then what approximate percent of selling price is profit?a)14b)13c)12d)9Correct answer is option 'B'. Can you explain this answer?
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