Cost price and selling price of an article are in ratio of 11 : 16. If cost…
2021
Cost price and selling price of an article are in ratio of 11 : 16. If cost price is increased by 20 percent and selling price is increased by 20 percent, then what is the new profit percentage?
- A.
52.24
- B.
45.45
- C.
37.45
- D.
61.86
Attempted by 42 students.
Show answer & explanation
Correct answer: B
To find the new profit percentage, we can follow these steps:
Step-by-Step Calculation
Define Initial Values:
The ratio of Cost Price (CP) to Selling Price (SP) is 11 : 16.
Let CP = 110 and SP = 160 (using multipliers of 10 for easier calculation).
Calculate New Values:
The CP is increased by 20%:
New CP = 110 + (20% of 110) = 110 + 22 = 132.
The SP is increased by 20%:
New SP = 160 + (20% of 160) = 160 + 32 = 192.
Calculate New Profit Percentage:
New Profit = New SP - New CP = 192 - 132 = 60.
New Profit % = (Profit / New CP) × 100
New Profit % = (60 / 132) × 100 ≈ 45.45%.