In a certain store, the profit of an article is 380% of the cost. If the cost increases by 20% but the selling price remains the same, what percentage of the selling price is the profit:
Answer & explanation
Correct answer: option 2
Profit percentage = 380% and Increase in cost price = 20%
The selling price of the articles remains constant.
Percentage of profit = Gain value ÷ Selling price × 100
Let Cost price = 100
Profit = 380
Selling price = 380 + 100 = 480
Increased cost price = 120
Percentage = 480−120480 × 100
⇒ 360480 × 100 = 75%