Aptitude - Profit and Loss - Discussion

We know that.

P=S.P-C.P....(1).

Here the profit is 320% of the cost, so.

P= (320/100)*C.P....(2).

Substitute (2) in (1) instead of P.

We get (320/100)*C.P = S.P-C.P....(3).

From the equation (3) we can calculate the s. P in terms of C.P as.

S.P = (420/100)*C.P....(4).

Next we take the second condition: the cost is increased by 25%.

The new C.P is C.P+(25/100)*C.P....(5).

The equation (5) is substituted in the equation (1) instead of C.P.

We get P =S.P - (C.P+(25/100)*C.P).

P = S.P-C.P(1+(25/100))....(6).

We are calculating new profit (P) is how the percentage of the selling price (S.P).

Hence in equation (6) substitute C.P in terms of S.P.

We know the relation between s. P and c. P in equation (4) from that.

C.P = (100/420)*S.P....(7).

Substitute this c. P in to equation (6).

P=S.P-(100/420)*S.P*(1+(25/100)).

By solving we get : P = S.P (1-(125/420)) = 70% (approximately).

Can anyone explain me once again I have to look at it?

Can anyone explain me about ratio proportion?

60.90% should be the right answer for this question. SP should remain constant was mentioned at the question, so answer must be 60.90%.

Thanks.

Simple, Assume Cost = 100 Profit gained is 320%.

So SP = 320+100 = 420.

Now CP increase by 25, New CP = 125.

Gain now = 420-125 = 295.

Gain % with respect to SP (as per question) = 295/420 x 100 = 70%.

Thank you so much to every one for nice explanation. Great site to learn.

Thanks you so much every one for nice discussion.

I can't understand this question please. Explain me simple method + shortcut?

Let C.P = 100.

When C.P = 100 then profit will be profit = (320/100)*100 = 320.

When C.P = 100 and Profit = 320 then S.P = (C.P+Profit) = (320+100) = 420.

If the C.P increases by 25% Then C.P = 125 and S.P according numerical remain constant.

So S.P = 420.

Now profit will be profit = (S.P-C.P) = 420-125 = 295.

So Required % = (295/420)*100 = approx (70).

236% is the answer because final profit is to be calculated on CP not on SP hence 295/125 = 236%.

I can't understand the solution.