Question

Q. The selling price of a product has increased by 20%, 15% and 10% successively while the cost has also increased by 10%, 20% and then again by 10%. If he’s making 25.45% profit now, how much profit did he used to make before the price hikes?

• A. 25%
• B. 20.45%
• C. 20%
• D. 22.22%

Answer 1

The correct option is C 20%

Let the cost price and selling price before the hike be x and y.
Then, $\frac{y\times 1.2\times 1.15\times 1.1}{x\times 1.1\times 1.2\times 1.1}\times 100=125.45\frac{151.8y}{1.452x}=125.45\Rightarrow 104.545\times \frac{Y}{X}=125.45\Rightarrow \frac{y}{x}=1.2$
$\Rightarrow$ Profit % = 20%