Question

A shop is increasing all its prices by 20%. A bracelet was bought by the shop for $400. Under the old price it would have made a profit of 10%. What percentage profit will the shop make on the new price? Pls show working ​

Answer 1

Under the old price, the selling price of the bracelet is:

Profit = 10% of cost price = 10% of $400 = $40
Selling price = cost price + profit = $400 + $40 = $440

After the 20% increase in prices, the new selling price of the bracelet is:

New selling price = $440 + 20% of $440 = $528

The profit made on the new price is:

Profit = selling price - cost price = $528 - $400 = $128

Therefore, the percentage profit on the new price is:

Percentage profit = (profit/cost price) x 100%
Percentage profit = ($128/$400) x 100%
Percentage profit = 32%