Question

A merchant paid $3 each for golfing hats that he sold for $4 each. He therefore earned a

gross profit of $1 per hat. By what per cent was the cost price increased to provide for this
profit?
20%
O 30%
331%
300%
o none of these

Answer 1

Option E. None of these.

Explanation:

A merchant paid $3 each for golfing hats and sold for $4 each. He earned a gross profit of $1 per hat.

We have to calculate the percent of increase in cost price Or percentage profit.

Percentage profit =
`\frac{\text{(Selling price - Cost price)}}{\text{cost price}}(100)`

=
`((4-3))/(3).(100)`

=
`(100)/(3)=33.33`%

Which not in any option.

Therefore, Option E. None of these is the answer.

Answer 2

Explanation:

The cost increase is:

(4 - 3) / 3 × 100%

33%

The answer is none of these.