in a business transaction the mark-up is 80%,if the cost increases by 20% but selling price remains the same,calculate % change and profit

if price is p and cost is c, then normally,

p = 1.8c

If c increases by 20%, then

1.8c - 1.2c = 0.6c

that is, the profit has changed from .8c to .6c, or a decrease of 25%.

Thank you mr steve really appreciate it

To calculate the percentage change and profit in this business transaction, we can follow these steps:

1. Let's assume the initial cost of the product is represented by the variable "C".
2. Given that the markup is 80%, we can calculate the selling price using the formula: Selling Price = Cost + Mark-up
- Selling Price = C + 0.8C = 1.8C
3. Now, let's consider the scenario where the cost increases by 20%. To calculate the new cost, we can use the formula: New Cost = Cost + (Cost * Percentage Increase)
- New Cost = C + (C * 0.2) = 1.2C
4. Since the selling price remains the same, the new selling price will also be 1.8C.
5. To calculate the percentage change, we can use the formula: Percentage Change = ((New Value - Old Value) / Old Value) * 100
- Percentage Change = ((1.8C - 1.8C) / 1.8C) * 100 = 0%
It means that there is no change in the selling price.
6. Finally, to calculate the profit, we can subtract the new cost from the selling price: Profit = Selling Price - New Cost
- Profit = 1.8C - 1.2C = 0.6C

Therefore, in this business transaction with a markup of 80%, a 20% increase in cost but a constant selling price would result in a 0% change in the selling price and a profit of 0.6 times the initial cost (0.6C).