Q. If cost price increases by 20% and selling price remains same, what happens to profit?

  • (A) Profit increases
  • (B) Profit decreases
  • (C) Profit remains same
  • (D) Profit becomes double
βœ… Correct Answer: (B) Profit decreases
Explanation: With same SP and increased CP, profit margin decreases.
Explanation by: Yami Thakur
With same SP and increased CP, profit margin decreases.

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