Question

In a shop, the profit is 100% of the cost. If the cost increases by 75% but the selling price remains constant, find out approximately what percentage of the selling price is the profit?

Answer 1

12.5%.
.
Before the increase the cost and profit are identical. Let's set them at 1. That means the sales price is 2.
After the increase the cost is now 1.75. The sales price is still 2.
Thus the profit is 0.25, which is (0.25 / 2 =) 12.5% of the sales price.