Subject: General Aptitude · Chapter: Profit and Loss · Exam: · Marks: · Difficulty:
The cost of raw materials of a product increases by 30\%, the manufacturing cost increases by 20\% and the selling price of the product increases by 60\%. The raw material and the manufacturing cost originally formed 40\% and 60\% of the total cost respectively. If the original profit percentage was one-fourth the original manufacturing cost, find the approximate new profit percentage.
(a)48.39\%
(b)54.76\%
(c)63.85\%
(d)66.72\%
Answer
Answer (as printed): A
Explanation
Let the total initial cost of production be ₹ 100. Then, manufacturing cost $=₹ 60$, Cost of raw materials $=₹ 40$. Original S.P. $=₹\left(100+\frac{60}{4}\right)=₹ 115$. New cost of raw materials $=130 \%$ of $₹ 40=₹ 52$. New manufacturing cost = 120\% of ₹ $60=₹ 72$. New cost of the product $=₹(52+72)=₹ 124$. New S.P. $=160 \%$ of $₹ 115=₹\left(\frac{160}{100} \times 115\right)=₹ 184$. New profit $=₹(184-124)=₹ 60$. ∴ New profit $\%=\left(\frac{60}{124} \times 100\right) \%=48.39 \%$.
Explanation as extracted from the printed page; notation may be imperfect.