The initial profit percentage on the sale of an item was 55%. If the cost price of the item went up by 24% but the selling price remained the same, what would be the new profit percentage?
Answer & explanation
Correct answer: option 2
Let CP SP
100 155
After increasing CP by 24% and keeping no change in SP
CP SP
124 155
Now the profit = 155 - 124 = 31
Profit percentage = \(\frac{31}{124}\) × 100= 25%