Aptitude - Profit and Loss - Discussion

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.

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

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

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

How we will get the value 420?

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).

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.

We are all know that gain% in terms of C.P price but in the given problem gain% in terms of S.P.

I have one doubt if the question is asked like what's the percentage of the selling price is the profit means we have to use denominator as s.p ah?

I have a doubt here in question's 2nd part here we know that %profit calculated by CP but here?