Answer
The rate of profit based on the cost is 30%.
Work Step by Step
Let r represent the rate of profit.
We can use the following guideline to solve this problem:
Selling price = Cost + Profit
So:
31.20 = 24 + r $\times$ 24
31.20 = 24 + 24r
7.2 = 24r
Divide both sides by 24:
r = 0.3
Multiply this amount by 100% to convert it into percent.
So, 0.3 $\times$ 100% = 30%
The rate of profit based on the cost is 30%.