Subject: General Aptitude · Chapter: Profit and Loss · Exam: 2010 · Marks: · Difficulty:
A small and medium enterprise imports two components A and B from Taiwan and China respectively and assembles them with other components to form a toy. Component A contributes to 10\% of production cost while component B contributes to 20\% of production cost. Usually the company sells this toy at 20\% above the production cost. Due to increase in the raw material and labour cost in both the countries, component A became 20\% costlier and component B became 40\% costlier. Owing to these reasons the company increased its selling price by 15\%. Considering that cost of other components does not change, what will be the profit percentage if the toy is sold at the new price?
(a)15.5\%
(b)25.5\%
(c)35.5\%
(d)40\%
Answer
Answer (as printed): B
Explanation
Let the original cost of the toy be ₹ 100. Then, original cost of component A = 10\% of ₹ $100=₹ 10$. Original cost of component $\mathrm{B}=20 \%$ of $₹ 100=₹ 20$. Original S.P. of the toy $=120 \%$ of $₹ 100=₹ 120$. New cost of component A = 120\% of ₹ $10=₹ 12$. New cost of component $\mathrm{B}=140 \%$ of $₹ 20=₹ 28$. New price of the toy $=₹[100+(12+28)-(10+20)]=₹ 110$. New S.P. of the toy $=115 \%$ of $₹ 120=₹ 138$. Profit $=₹(138-110)=₹ 28$. $$\text { ∴ } \text { Profit } \%=\left(\frac{28}{110} \times 100\right) \%=25.45 \% \approx 25.5 \% .$$
Explanation as extracted from the printed page; notation may be imperfect.