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Select the correct answerFor an article the profit is 170% of the cost price. If the cost price increase by 20% but the selling price remains same, then what is the new profit percentage?Options504175125

Question

Select the correct answerFor an article the profit is 170% of the cost price. If the cost price increase by 20% but the selling price remains same, then what is the new profit percentage?Options504175125

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Solution

Let's solve this step by step:

  1. Let's assume the cost price (CP) of the article is 100.Therefore,thesellingprice(SP)ofthearticle(whichis170100. Therefore, the selling price (SP) of the article (which is 170% of the cost price) would be 170.

  2. Now, if the cost price increases by 20%, the new cost price would be $120.

  3. However, the selling price remains the same, i.e., $170.

  4. The profit is calculated as the selling price minus the cost price. So, the new profit would be 170170 - 120 = $50.

  5. The profit percentage is calculated as (Profit/CP)*100. So, the new profit percentage would be (50/50/120)*100 = 41.67%.

So, none of the options provided (50, 41, 75, 125) are correct. The new profit percentage would be approximately 42%.

This problem has been solved

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