In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the selling price remains constant, approximately what percentage of the selling price is the profit?

The correct answer is “70%”.
Step by Step Solution:
Let’s assume
The initial cost price (CP) is 100.
The profit (p) is 320%
we know that ⇒ 320% of 100 = 320
We know that ⇒ Profit (P)= SP-CP
so,
The Selling Price (SP) ⇒ SP = CP +P
By putting values,
SP = 100+320 ⇒ 420
Now if CP increases by 25%
Then, the new cost price (CP1) is 100+25=125.
according to the problem condition, SP remains constant at 420
New profit (P1) = SP – CP1
P1= 320-125 ⇒ 295
Now we have to convert the new profit in percentage