A. 50%

B. 70%

C. 100%

D. 140%

### Check Answer

The correct answer is

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

**“70%”.**

Step by Step Solution:

Let’s assumeStep by Step Solution:

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

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