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hasnain

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From: Chichawatni

Registered: 2014-10-13

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Percentage Increase In Cost Price:

Question:
A retailer increase the selling price by 25% due to which his profit percentage increase from 20% to 25%. What is the percentage increase in cost price?

Option A):
50%
Option B):
25%
Option C):
30%
Option D):
20%

Correct Answer is Option D):
20%

Explanation:
100 (Initial CP) ---- 20% ↑(initial profit)---> 120 (SP).
120 (SP) ---25%↑ ---> 150 (New SP).
Let x be the new Cost price.
Selling Price = 150.
x * 1.25 = 150.
x = 120.
% change = [(120 -100)/ 100] *100 = 20%.

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