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The original cube with 3-inch edge has the surface area of 6*(3*3) = 6*9 = 54 square inches.
When cut into 27 1-inch cubes, it generates 27 small cubes with the surface area of 6*1*1 = 6 square inches each.
So the total surface area for all 27 cubes is 27*6 = 162 square inches.
The percent of increase is
= 200%.