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The profit percentage decreases by 60 percentage points when the cost price of an article is increased by 20% and the selling price is decreased by 16%. What must be the original profit percentage?
  • a)
    50%
  • b)
    60%
  • c)
    85%
  • d)
    100%
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The profit percentage decreases by 60 percentage points when the cost ...
Let the original cost price and selling price be x and y.
Intial Profit Percentage = (y - x / x) x 100
New Profit Percentage = (0.84y - 1.2x / 1.2x) x 100 = 60
(y - x / x) x 100 - (0.84y - 1.2x / 1.2x) x 100 = 60
⇒ y / x (1 - 84 / 120) = 3 / 5
⇒ y / x x 36 / 120 = 3 / 5 ⇒ y / x = 2 / 1
Initial Profit Percentage = y - x / x x 100 = 100%
Hence, option 4.
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Most Upvoted Answer
The profit percentage decreases by 60 percentage points when the cost ...
Given:
Profit percentage decreases by 60 percentage points
Cost price increased by 20%
Selling price decreased by 16%

To Find:
Original profit percentage

Solution:
Let's assume the cost price of the article is Rs. 100.
After increasing the cost price by 20%, the new cost price will be:
= 100 + (20/100)*100
= Rs. 120

After decreasing the selling price by 16%, the new selling price will be:
= 100 - (16/100)*100
= Rs. 84

Let's calculate the profit percentage after the cost price and selling price changes:
Profit = Selling price - Cost price
= 84 - 120
= -36

Profit percentage = (Profit/Cost price)*100
= (-36/120)*100
= -30%

From the given information, we know that the profit percentage decreases by 60 percentage points. So, the original profit percentage would be:
Original profit percentage = -30% + 60%
= 30%

Therefore, the original profit percentage is 30%, which is option D.
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The profit percentage decreases by 60 percentage points when the cost price of an article is increased by 20% and the sellingprice is decreased by 16%. What must be the original profit percentage?a)50%b)60%c)85%d)100%Correct answer is option 'D'. Can you explain this answer?
Question Description
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