Question

16. a), Mrs. Dhital makes a profit of 50% of the cost of her investment in the transaction of her cosmetic items. She further increases her cost of investment by 25% but the selling price remains the same. How much is the decrease in her profit percent? ​

Answer 1

Let her initial cost be 100. Hence with 50% profit SP is 150.

Now due to additional investment, cost increases to 125 but SP remains at 150. Therefore new profit % is 25/125×100 =20% is the new Profit %.

Hence decrease in Profit % = 50- 20 = 30%.