The initial profit percentage on the sale of an item was 55%. If the cost price of the item went up by 24% but the selling price remained the same, what would be the new profit percentage?

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 07 Dec 2022 Shift 1)

Answer 1

Given:

The initial profit percentage on the sale of an item was 55%.

Concept used:

SP = CP + CP × profit%

Here,

SP = Selling price

CP = Cost price

Calculation:

Let the CP of an article be 100a

So, profit = 100a × 55%

⇒ 55a

So, SP = 100a + 55a

⇒ SP = 155a

New CP = 100a + 100a × 24%

⇒ 100a + 24a = 124a

So, new profit = 155a - 124a

⇒ 31a

Profit% = (31a/124a) × 100

⇒ 25%

∴ The new profit percentage would be 25%.

Shortcut Trick

Profit increases by 55% then CP1 : SP = 20 : 31

Cost price went up by 24% then CP1 : CP2 = 25 : 31

Then, CP1 : CP2 : SP = 100 : 124 : 155 [ by making CP1 equal in both the ratio]

So, the new profit% = (155 - 124)/124 × 100 = 31/124 × 100 = 25%