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.

  • 143.89%
  • 254.76%
  • 363.85%
  • 466.75%
Answer:- 4
Explanation:-

Solution:
Let the total initial cost of production be Rs. 100
Then,
manufacturing cost = Rs. 60.
Cost of raw materials = Rs. 40.
Original Selling Price =Rs.(100+604)=Rs115 New cost of raw materials = 130% of Rs. 40 = Rs. 52
New Manufacturing cost = 120% of Rs. 60 = Rs. 72
New cost of the product = Rs. (52 + 72) = Rs. 124
New S.P. = 160% of Rs. 115 =Rs.(160100×115)=Rs184 New profit = Rs. (184 - 124) = Rs. 60 New profit %=(60124×100)%=48.39%.

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New cost of raw materials = 130% of Rs. 40 = Rs. 52
New Manufacturing cost = 120% of Rs. 60 = Rs. 72
New cost of the product = Rs. (52 + 72) = Rs. 124
New S.P. = 160% of Rs. 115 =Rs.(160100×115)=Rs184 New profit = Rs. (184 - 124) = Rs. 60 New profit %=(60124×100)%=48.39%. ", "dateCreated": "7/24/2019 10:09:12 AM", "author": { "@type": "Person", "name": "Nitin Sir" } }, "suggestedAnswer": { "@type": "Answer", "text": "
Solution:
Let the total initial cost of production be Rs. 100
Then,
manufacturing cost = Rs. 60.
Cost of raw materials = Rs. 40.
Original Selling Price =Rs.(100+604)=Rs115 New cost of raw materials = 130% of Rs. 40 = Rs. 52
New Manufacturing cost = 120% of Rs. 60 = Rs. 72
New cost of the product = Rs. (52 + 72) = Rs. 124
New S.P. = 160% of Rs. 115 =Rs.(160100×115)=Rs184 New profit = Rs. (184 - 124) = Rs. 60 New profit %=(60124×100)%=48.39%. ", "dateCreated": "7/24/2019 10:09:12 AM" } }
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