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):
Initially profit = 25%
Let the cost price be Rs.100.
Selling price = 100 $$\times \frac{125}{100}$$ = 125
now,
Cost price = 100Â $$\times \frac{120}{100}$$ = Rs.120
Selling price = 125 $$\times \frac{110}{100}$$ = Rs.137.5
Profit = 137.5 - 120 = 17.5
Profit percentage =Â $$\frac{17.5}{120} \times 100$$ = 14.6%
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