Question

If the selling price of an item is doubled, the profit gets tripled. What is the new profit percentage if there is no change in the cost price of the item?

• A. 100%
• B. 200%
• C. 50%
• D. 300%

Answer 1

The correct option is D 300%

Let c, s, and p be the cost price, selling price and profit initially.
Profit = Selling price - Cost price
p = s - c ...... (1)

New selling price = 2 times the initial selling price = 2s
New profit = 3 times the initial profit = 3p
The cost price remains unchanged.
3p = 2s - c
$\Rightarrow$ 3(s - c) = 2s - c .... (from 1)
$\Rightarrow$ 3s - 3c = 2s - c
$\Rightarrow$ s = 2c

New profit = 2s - c = 2(2c) - c = 4c - c = 3c
New profit percentage = $\frac{Newprofit}{Costprice}\times 100$
= $\frac{3c}{c}\times 100$
= $300$ %