Arun makes a profit of 40% on cost price by selling a Cooler for Rs. 5600. If the cost price of the Cooler is increased by 20% and he wants to earn the same profit, what will be the new profit percent on selling price?a.18%b.25%c.14%d.27%

Let's solve this step by step:

Step 1: First, we need to find the cost price of the cooler. We know that Arun makes a profit of 40% on the cost price by selling the cooler for Rs. 5600. So, we can write the equation as follows:

Cost Price + 40% of Cost Price = Selling Price Cost Price + 0.40Cost Price = 5600 1.40Cost Price = 5600 Cost Price = 5600 / 1.40 = Rs. 4000

Step 2: Now, the cost price of the cooler is increased by 20%. So, the new cost price will be:

New Cost Price = Cost Price + 20% of Cost Price New Cost Price = 4000 + 0.20*4000 = Rs. 4800

Step 3: Arun wants to earn the same profit of Rs. 1600 (which is 40% of the original cost price of Rs. 4000). So, the new selling price will be:

New Selling Price = New Cost Price + Profit New Selling Price = 4800 + 1600 = Rs. 6400

Step 4: Now, we need to find the new profit percent on the selling price. The formula to calculate profit percent is:

Profit Percent = (Profit / Selling Price) * 100 Profit Percent = (1600 / 6400) * 100 = 25%

So, the new profit percent on the selling price is 25%. Therefore, the answer is (b) 25%.