8 Views

Question : On a certain item profit is 150%. If the cost price increases by 25%, what will be the new profit margin (in %)?

Option 1: 25

Option 2: 50

Option 3: 100

Option 4: 75


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: 100


Solution : Let the initial cost price (CP) of the item be Rs. 100.
Given that the profit is 150%.
The selling price (SP),
SP = 100 + $\frac{150}{100}$ × 100 = Rs. 250
Now, if the cost price increases by 25%.
The new cost price = CP + $\frac{25}{100}$ × CP = 100 + 0.25 × 100 = Rs. 125
Assuming the selling price remains the same.
The new profit = Rs. 250 – Rs. 125 = Rs. 125
The net profit margin = $\frac{125}{125}$ × 100 = 100%
Hence, the correct answer is 100.

SSC CGL Complete Guide

Candidates can download this ebook to know all about SSC CGL.

Download EBook

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books