Practicing Success
Anu fixes the selling price of an article at 25% above its cost of production. If the cost of production goes up by 20% and she raises the selling price by 10%, then her percentage profit is (correct to one decimal place): |
16.4% 14.6% 13.8% 15.2% |
14.6% |
Let cost price = 100 Selling price = 100 × \(\frac{5}{4}\) = Rs. 125 Profit = 125 – 100 = Rs. 25 New cost price = 100 × \(\frac{120}{100}\) = Rs. 120 New selling price = 125 × \(\frac{110}{100}\) = Rs. 137.5 New profit = 137.5 – 120 = 17.5 ∴ Profit percentage = \(\frac{17.5}{129}\) × 100 = 14.6% |