Aptitude - Profit and Loss - Discussion
Discussion Forum : Profit and Loss - General Questions (Q.No. 4)
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?
Answer: Option
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 |
Video Explanation: https://youtu.be/bQA8SB8ycbw
Discussion:
148 comments Page 12 of 15.
Django Boy said:
10 years ago
The point is in 'what context' the profit percentage is to be calculated?
Is it relative to cost price or selling price?
Well!, when you're asked to find the profit %, its relative to the 'selling price'.
That's why in the above problem the answer is 70%. If we consider the cost price as the base to find the profit %, then it would be 236%. But this is wrong.
To understand this more,
Draw a pie diagram, taking the selling price (420) as the full circle and mark the proper fractions for cost price (125) and for the profit (295). Just see the portion of profit and determine the area covered in the circle, that's the profit %.
Is it relative to cost price or selling price?
Well!, when you're asked to find the profit %, its relative to the 'selling price'.
That's why in the above problem the answer is 70%. If we consider the cost price as the base to find the profit %, then it would be 236%. But this is wrong.
To understand this more,
Draw a pie diagram, taking the selling price (420) as the full circle and mark the proper fractions for cost price (125) and for the profit (295). Just see the portion of profit and determine the area covered in the circle, that's the profit %.
Deepika said:
10 years ago
Thanks for your clear explanation @Malini.
Hariom Dubey said:
10 years ago
In general, we calculate profit % relative to C. P (because CP remains constant) but if we are asked to calculate profit % relative to S. P (as in this question) we have to take S. P.
As base price provided S. P is given constant. Since in this question S. P is given constant, we can take S. P as the base price.
As base price provided S. P is given constant. Since in this question S. P is given constant, we can take S. P as the base price.
Bhushan said:
10 years ago
From where the value 1475 come? Give explanation.
Srinivas said:
10 years ago
We calculate the profit percentage with the help of cost price but in above problem why we are using selling price, tell me the reason.
Chirag said:
9 years ago
Hey, @Nitesh, you find here to profit not profit %, then how can you say that the answer becomes 70. Read question carefully and then go ahead.
Houdini said:
9 years ago
How can you change the sp there is clearly written that sp remains constant?
Ramesh said:
9 years ago
CP = 125
SP = 420
Profit = 320.
For SP is 420 we got 295 profit.
Convert it into 100(%).
(295/420) * 100 = 70%.
SP = 420
Profit = 320.
For SP is 420 we got 295 profit.
Convert it into 100(%).
(295/420) * 100 = 70%.
Yb patil said:
9 years ago
We always assume cp =100 because loss and gain is always reckoned on cost price. That's why we assume (if not given ) cp = 100.
Amrita said:
9 years ago
Let CP =100 rs.
From ques. SP = 320% of CP = 100+320 =420 rs.
Now ques says that CP is increased by 25% .it means now CP = 125 rs
But, SP remains constant.
Now Profit = 420 - 125=295 rs
From the question, we have to find out the PROFIT % at SP(420 rs.)
So P% = (295/420)*100 = 70%.
(SP-CP)/CP is not a formula actually. this is only for our comfort to find out an easier way to solve problems.
From ques. SP = 320% of CP = 100+320 =420 rs.
Now ques says that CP is increased by 25% .it means now CP = 125 rs
But, SP remains constant.
Now Profit = 420 - 125=295 rs
From the question, we have to find out the PROFIT % at SP(420 rs.)
So P% = (295/420)*100 = 70%.
(SP-CP)/CP is not a formula actually. this is only for our comfort to find out an easier way to solve problems.
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers