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. Components A contributes to 10% of production cost while components 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 components 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: Option B
Solution(By Examveda Team)
Let the original cost of the toy be Rs. 100.Then,
Original cost of component A
= 10% of Rs. 100
= Rs. 10
Original cost of component B
= 20% of Rs. 100
= Rs. 20
Original S.P. of the toy
= 120% of Rs. 100
= Rs. 120
New cost of component A
= 120% of Rs. 10
= Rs. 12
New cost of component B
= 140% of Rs. 20
= Rs. 28
New price of the toy
= Rs. [100 + (12 + 28) - (10 + 20)]
= Rs. 110
New S.P. of the toy
= 115% of Rs. 120
= Rs. 138
Profit = Rs. ( 138 - 110) = Rs. 28
$$\eqalign{ & \therefore {\text{Profit }}\% = \left( {\frac{{28}}{{110}} \times 100} \right)\% \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 25.45\% \approx 25.5\% \cr} $$
This Question Belongs to Arithmetic Ability >> Profit And Loss
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