The profit gained on selling a certain product is 320% of the cost. If the cost increases by 10% but the selling price remains constant, then what percentage of the selling price is the profit (correct to one decimal place)?

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Accepted Answer

Let the original cost price be C.
Profit = 320% of cost price = 3.2C
Selling price (S) = Cost price + Profit = C + 3.2C = 4.2C

Now, cost price increases by 10%, so new cost price = 1.1C
Selling price remains the same = 4.2C

New profit = Selling price - new cost price = 4.2C - 1.1C = 3.1C

We need to find the profit as a percentage of the selling price:
Profit percentage = (Profit / Selling price) × 100 = (3.1C / 4.2C) × 100 = (3.1 / 4.2) × 100
= 0.738 × 100 = 73.8%

Therefore, the profit is 73.8% of the selling price after the cost increase.

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