Question 30

A manufacturer fixes his selling price at 33% over the cost of production. If cost of production goes up by 12% and manufacturer raises his selling price by 10%, his percentage profit is

Solution

If we consider cost price as 100, then selling price is 133.

If cost price is increased by 12% and selling price is increased by 10%, then,

new cost price is 112 & new selling price is 143.3

Percentage profit = $$ \frac {143.3-112}{112} \times 100 $$

=$$\frac{3430}{112}$$

=$$ 30\frac{5}{8}\% $$

Share on Whatsapp Share on Whatsapp

Create a FREE account and get: