If the selling price of a bed is 2-times of initial, then the profit is 10-times of initial. Find the initial profit percentage (in %).

Correct option is C

Given:

New profit = 10$$\times$$​ initial profit

Formula Used:

Profit = SP - CP

Profit % =$$\dfrac{\text{Profit}}{\text{CP}} \times 100$$​​

Solution:

Initial selling price = S, cost price = C

Initial Profit = S - C

New selling price = 2S

New profit = 2S - C.

Given 2S - C = 10(S - C).
2S - C = 10S - 10C 

-8S + 9C = 0 ​​

S =$$\frac{9}{8}$$​C 
Initial profit = S - C = $$\frac{9}{8}C - C = \frac{1}{8}C$$ ​

​$$\text{Initial profit \%} = \frac{\frac{1}{8}C}{C}\times 100 = 12.5\%$$ ​