A retailer increases the selling price by 25% due to which his profit percentage increase from 20% to 25%. What is the percentage increase in cost price?

A) 20%

B) 30%

C) 25%

D) 50%

Let,
Cost Price (CP) = Rs. 100
Profit % = 20
Selling Price (SP) = 120

When profit increases from 20% to 25%
Cost Price (CP) = y
Profit % = 25
Selling Price (SP) after 25% increase = 120 + 25% = Rs. 150


From question
y + 25 % profit = 150

1.25 y = 150
so y = 120

% change in cost price = [ (120 – 100) / 100 ] x 100 = 20%

 

 

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