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Profit, Loss and Discount
In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit?
Correct answer: B
Explanation and memory cue
Initially, profit is 320% of cost, so selling price = cost + profit = 100% + 320% = 420% of cost. When cost increases by 25%, new cost = 125% of original cost, but selling price remains 420% of original cost. New profit = selling price - new cost = 420% - 125% = 295% of original cost. To find profit as a percentage of selling price: (295% / 420%) × 100% ≈ 70%.