Question 73

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):

Solution

Initially profit = 25%

Let the cost price be Rs.100.

Selling price = 100 $$\times \frac{125}{100}$$ = 125

now,

Cost price = 100 $$\times \frac{120}{100}$$ = Rs.120

Selling price = 125 $$\times \frac{110}{100}$$ = Rs.137.5

Profit = 137.5 - 120 = 17.5

Profit percentage = $$\frac{17.5}{120} \times 100$$ = 14.6%

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