Question

By selling an article for $320, the profit was 20% of the cost price. What was the cost price of the article?

Answer 1

70 percent

Explanation:

Lets assume initial cost price (CP) which is 100.

The profit (P) is 320 (320% of 100 is 320) understood?

Selling Price (SP) is CP +P. So SP must be 420

so basically Now CP increases by 25%. So new cost price (CP1) is 125.

SP remains constant at 420

New profit (P1) is SP - CP1 = 295

P1 as a percentage of SP is (295/420) x 100 = 70%