In a shop, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, find out approximately what percentage of the selling price is the profit?  Pick:	A) 180 %	B) 120 %	C) 90 %	D) 80 %	E) 70 %

Rationale: let the cp = 100 profit = ( 320 / 100 ) × 100 = 320 sp = cp + profit = 100 + 320 = 420 if the cost increases by 25 % , new cp = ( 125 / 100 ) × 100 = 125 selling price is constant , hence new sp = 420 profit = sp – cp = 420 – 125 = 295 required percentage = ( 295 / 420 ) × 100 = 2950 / 42 = 1475 / 21 ≈ 70 answer : e
Answer: E