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?

General
1

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?

2

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?

Answer:
Let’s assume the cost price is $100.

  • The profit is 320% of the cost, which is $100 * 320% = $320.
  • If the cost increases by 25%, the new cost will be $100 + $100*25% = $125.
  • Since the selling price remains constant, the selling price is also $125.
  • Profit now is $125 - $100 = $25.
  • To find what percentage of the selling price is the profit, we need to calculate ($25 / $125) * 100.
  • Therefore, the profit as a percentage of the selling price is approximately 20%.

Therefore, in this scenario, the profit as a percentage of the selling price is approximately 20%.