Aptitude - Profit and Loss - Discussion

If we take cost prize 1000, then profit will not be 320, cause in question profit is 320 percent of 1000, which is not equal to 320.

Let me explain,

1) Profit is 320% of Cost ==> Profit = (320/100)*CP.
Consider C.P is 100 then Profit = (320/100)*100 = 320.
Now Profit = SP-CP.
therefore, 320 = SP-100.
So, SP=420.

2) If the Cost increase by 25% ==> CP=100+25 = 125.

3)But the selling price remains constant ==> SP=420 (from 1st part).

Profit = SP-CP = 420-125 = 295.

4) What percentage of the selling price is the profit?
<<< for example, X% of Y is equal to (X/100)*Y >>>>
<<< 2% of 5 ==> (2/100)*5 >>>

From the above example, what percentage of the selling price is the profit==>

What percentage = ?
Of Selling Price = SP.
Is Profit = Profit.

(?/100)*SP = Profit.

Therefore, ? or Required percentage = (Profit * 100)/SP.

Required percentage = (295*100)/420 = 70%(approximately).

How we will get the value 420?

The answer is 236% is we substitute CP=125.

How you have calculated 25% for cost price? If CP is assumed as 100.

Formulae is P% = P/C.P*100 then why we are taking 420 which is S.P?

Very nice @Malini!

I got you in the question it is mentioned clearly that what percentage of the selling price is the profit?

But from childhood we have been studying that profit could only on C.P.

Yes what you did is good. Please this also challenges me. You can help me.

Assume that the district tax revenues grow at 25%. The district authority believes that its financial needs will be satisfied when the tax revenues double. As the local revenue collection officer, you are approached to tell when that will happen, holding other factors constant.

thax guys for explain clearly

Hi @Chandranaik.
Read the question it is given, what percentage of the selling price is the profit?

So they are calculating like:
x% of 295 =420;

x=(295/420)*100;