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In a certain store, the profit is 250% of the cost. If the cost increases by 25%, but the selling price remains constant, then approximately what percentage of selling price is the profit?
  • a)
    59%
  • b)
    70%
  • c)
    58%
  • d)
    64%
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
In a certain store, the profit is 250% of the cost. If the cost incre...
Let CP be Rs. 100.
Profit = Rs. 250
SP = Rs. 350
New CP = Rs. 125
New SP = Rs. 350
Profit = SP – CP = Rs. (350 – 125) = Rs. 225
Required percentage
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Community Answer
In a certain store, the profit is 250% of the cost. If the cost incre...
Profit Percentage Calculation:

Let's assume the cost price of an item is C.

According to the given information, the profit is 250% of the cost.

Profit = 250% of C = 2.5C

Selling Price Calculation:

To find the selling price, we add the cost price and profit.

Selling Price = Cost Price + Profit

Selling Price = C + 2.5C = 3.5C

Change in Cost Price:

The cost price increases by 25%.

New Cost Price = Cost Price + 25% of Cost Price

New Cost Price = C + 0.25C = 1.25C

Profit Percentage Calculation after the cost increase:

Profit = Selling Price - New Cost Price

Profit = 3.5C - 1.25C = 2.25C

Profit Percentage = (Profit / Selling Price) * 100

Profit Percentage = (2.25C / 3.5C) * 100

Profit Percentage = (0.64) * 100 = 64%

Approximate Percentage of Profit to Selling Price:

The approximate percentage of profit to selling price is 64%. Therefore, the correct answer is option 'D'.
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In a certain store, the profit is 250% of the cost. If the cost increases by 25%, but the selling price remains constant, then approximately what percentage of selling price is the profit?a)59%b)70%c)58%d)64%Correct answer is option 'D'. Can you explain this answer?
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