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Discussion

  1. A retailer increase the selling price by 25% due to which his profit percentage increases from 20% to 25%. What is the percentage increase in cost price ?
    1. 20%
    2. 30%
    3. 25%
    4. 50%
  1. Correct Option: A

    In beginning
    Cost Price (CP) = Rs. 100
    Profit % = 20
    Selling Price (SP) = 120

    When profit increases from 20% to 25%
    Cost Price (CP) = y
    Profit % = 25
    Selling Price (SP) after 25% increase = 120 + 25% = Rs. 150


    From question
    y + 25 % profit = 150

    1.25 y = 150
    so y = 120

    % change in cost price = [ (120 - 100) / 100 ] x 100 = 20%


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