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# Aptitude - Profit and Loss - Discussion

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"The secret to creativity is knowing how to hide your sources."
- Albert Einstein
4.

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?

 [A]. 30% [B]. 70% [C]. 100% [D]. 250%

Explanation:

Let C.P.= Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420.

New C.P. = 125% of Rs. 100 = Rs. 125

New S.P. = Rs. 420.

Profit = Rs. (420 - 125) = Rs. 295.

 Required percentage = 295 x 100 % = 1475 % = 70% (approximately). 420 21

 Vinoth said: (Tue, Jun 29, 2010 12:38:38 AM) Profit% = (Gain*100)/CP right. But in the above problem SP has been substituted instead of CP?

 Sundar said: (Wed, Jul 7, 2010 01:39:19 AM) Hi Vinoth, Please read the question very carefully. What percentage of the selling price is the profit? That's why here SP is substituted. Have a nice day!

 Vaishali said: (Thu, Jul 8, 2010 06:26:09 AM) Same problem that profit=gain*100/cp, but how can we change formula. I think first we have to calculate the profit% then should find what % of P it is na?

 Anshuma Chugh said: (Wed, Jul 14, 2010 11:16:47 AM) Maths is so complicated, Is not so, needs so much practice.

 Selvam said: (Tue, Sep 28, 2010 02:37:06 AM) Hai friend I can't unterstand your concept please explain one more time.

 Kavi said: (Thu, Dec 23, 2010 02:26:18 AM) Somebody please explain me the question clearly.

 Nitesh said: (Wed, Jan 5, 2011 11:01:37 AM) Let CP=1000 profit=320% But profit = SP-CP; 320 = SP-1000 SP=1320; Now given that CP is increased by 25 % then CP becomes 1250 and SP is constant hence Profit = SP- CP profit = 1320-1250=70 therefore answer is 70

 Vivek said: (Wed, Jan 5, 2011 11:01:44 PM) You can assume 100 or x becoz for simplicity.

 Mahboob Alam said: (Sat, Jan 8, 2011 11:18:44 AM) How can we assume the value of C.P. is 100. If the value of C.P. is not given ? Can we take the value of CP is x?

 Deepak said: (Fri, Jan 21, 2011 11:15:59 AM) I cant understand method of this question please explain in simple format.

 Malini said: (Wed, Jan 26, 2011 04:11:15 AM) Let me explain you clearly: In most of the problems assume cp as 100 then only it will be easy. now let us assume cp=100 profit is given 320% we know p=sp-cp then sp=p+cp so sp=420 Then it is given cp is incresed by 25% so cp=alredy assumed as 100+now increased by 25% cp=125 sp is always constant(given in question) so now sp=420 cp=125 p=sp-cp =420-125 =295 p%=p/cp*100 But here it is specifically asked for sp(read the question) so p%=p/sp*100 =295/420*100 =70%

 Archana said: (Sun, Feb 13, 2011 02:44:26 AM) I had not understood the explanination. Can you please explain me it again. How can we assume cp to be 100?

 Habib said: (Wed, Feb 23, 2011 12:42:54 PM) Maths & Physics are completely based on assumption based foundations....even in this example no data about CP is given...so we have no choice just assume a simplified value (eg 100 or 1) and base your calculations upon that !!!!

 Dinesh said: (Mon, Mar 28, 2011 01:18:17 PM) Good explanation malini.

 Khaleel said: (Tue, Mar 29, 2011 12:47:27 AM) Hi nitesh if we take cp=100 your principle not works.

 Sinu said: (Wed, Apr 27, 2011 01:35:22 PM) Thanks malini.

 Swimmi said: (Sun, Jun 26, 2011 05:00:28 AM) Why sp 420 is calculated when it is given that sp will remain constant?

 Kanakam Vinay said: (Tue, Aug 2, 2011 10:24:44 AM) Nitesh your Answer is verry nice and Simple. But 1000 is Working 1000 increased by 25% it became 1250 , but if u take 100 incresed by 25% it became as 125 then the Problem is Wrong .. If we assume anything it will be satisfied to all the Methods.

 Hari Haran said: (Fri, Aug 19, 2011 12:25:50 PM) What percentage of the selling price is the profit? In maths formula is a basic, but we have to understand it in different views. Then we make it up easy. Sundar is correct.

 Balavignesh said: (Wed, Aug 31, 2011 08:38:51 PM) Profit=selling price-cost price But profit is given in percentage and i thought that as profit percentage. But we use it like profit i.e. Rs.320. How is this possible?

 Eshan said: (Fri, Sep 9, 2011 03:21:08 PM) In last formula %profit=(CP*100)/profit according to it ans is A.30%

 Rohini said: (Sun, Oct 2, 2011 08:32:49 PM) We don't have any formula p% = p/sp*100 We have sp = (100+p%)*cp/100

 Saran said: (Wed, Nov 2, 2011 10:08:08 AM) How is selling price is 420. ?

 Danish.Jamia said: (Sun, Nov 13, 2011 07:00:34 PM) You have taken wrong formula, the correct form is (profit*100) /cp.

 Kishan Chand said: (Fri, Dec 2, 2011 02:09:24 PM) The correct answer is 240%. Thats because, If you are buying of Rs. 125. And solding it of Rs 425. Now you calculate the percentage of profit.

 Asit said: (Sun, Dec 25, 2011 08:44:22 PM) @kishan chand your thought is absolutely correct, but the question is about percentage of only selling price, you are calculate it from the cost price. Now you understand or not?

 Radha said: (Tue, Jan 17, 2012 06:03:41 PM) Very niceexplanation malini.

 Mittalvarun2011 said: (Sat, Apr 28, 2012 05:26:49 PM) Thanks Nitesh and malini for such a nice explanation.

 Merlin said: (Sat, Jun 9, 2012 10:08:46 AM) Why we are taking cp as 100? In what cases we should assume in that way. 2. Why cannt we take that as x as in above sums.

 Sagar Khurd said: (Sun, Jun 10, 2012 05:11:35 PM) 25% cp is 1250 how that value get.

 Mohana said: (Thu, Jul 12, 2012 08:44:57 PM) How they have taken the C.P value = 100 even it gives change to assume any number like 1,2,3, etc.,

 Dinu said: (Sat, Jul 14, 2012 10:31:55 AM) @Mohana. They have given profit%=320%. So to calculate profit we use the formula profit%= (profit*100) /C.P. If you assume C.P=100 then always the profit% = profit for this simplicity we always assume C.P=100.

 Ann said: (Sat, Sep 8, 2012 08:51:42 AM) Good explanation Malini!

 Lekan said: (Sun, Oct 7, 2012 03:42:02 AM) Alright I have another method here without assumption. First things first. P=SP-CP. Since P=(320/100)CP Then (320/100)CP=SP-CP. SP=(420/100)CP Next thing is getting the second equation. Our target is "what percentage of the selling price SP is the profit,P if we have a new cost price of (125/100)CP while SP remains the same?" So keep another P in mind which is x per cent of SP. Therefore equation2 is xSP/100=SP-(125/100)CP So xSP=100SP-125CP. SP=(420/100)CP xSP=100SP-125CP Eq2. Substituting for SP in Eq2 then we have x(420/100)CP=100(420/100)CP-125CP xCP420/100=420CP-125CP. xCP420/100=295CP. x=295/4.2 x=70.23. Note it has to be an approximated value according to the question which is 70.

 Sujith Shetty said: (Mon, Dec 3, 2012 06:40:07 PM) Just assume cost of price is 100 then profit is 320 so total cost of product is 320+100=420 if cost increases 25% i.e 125 then profit decreases 420-125=295(profit) 295/420*100=70%

 Nids said: (Thu, Mar 21, 2013 10:30:08 PM) Lets assume cost to be 10. profit = 320/100*10 =32. S.P = CP + P =10+32 =42. Now cost increased by 25% (25/100*10=2.5) =10 + 2.5 =12.5. SP remaining the same 42 SP=C + p 42 =12.5 + x 29.5 = x. So, If 42 is 100, how much would be 29.5? Cross multiply 42=100. 29.5=? Ans: 70.