For an article, the profit is 220% of cost price. If the cost price increases by 25% and selling price remain same, then the new profit percentage is?
Answer & explanation
Correct answer: option 3
Let CP = 100
Profit @220% = 220
S.P. = 320
Now
Increased C.P. = 100 × 125% = 125
Profit = S.P. - C.P. = 320 - 125 = 195
Profit percentage = \(\frac{195}{125}\) × 100% = 156%