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:
146 comments Page 7 of 15.
Hariom Dubey said:
9 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.
Django Boy said:
9 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:
9 years ago
Thanks for your clear explanation @Malini.
Sakharam said:
9 years ago
In solution see Initially CP is 100 and SP is 420, so Profit is 320%.
Now CP is 125 and SP is 420, so Profit should be 420 - 125 = 295 means 236% should be the correct answer.
Now CP is 125 and SP is 420, so Profit should be 420 - 125 = 295 means 236% should be the correct answer.
Vinay said:
9 years ago
Good question @Supriya.
Supriya said:
9 years ago
How to calculate 1475/21?
How did 70% come? Please explain?
How did 70% come? Please explain?
Vijay said:
9 years ago
Hello @Vindo,
He finding percentage, not profit percent.
He finding percentage, not profit percent.
Sanket wankhede said:
9 years ago
How did 420 came into existence?
Priya.D said:
10 years ago
How did you assume C.P value?
Mahi said:
10 years ago
We have calculated Profit and SP in first case but why to take 125% for new CP, Although CP is 25%?
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