Problem: 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 ?
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
annotated_formula: multiply(divide(subtract(add(320, const_100), add(25, const_100)), add(320, const_100)), const_100)