Previously, the manufacturing cost of a product was thrice the cost of raw material. Now the cost of raw material increases in the ratio 5 : 12 and manufacturing cost increases in the ratio of 3 : 5. The previous cost of the product was Rs. 8. What should be the present selling price so that 25% profit can be made?
A. Rs. 13.70
B. Rs. 14.80
C. Rs. 18.50
D. Rs. 19.50
Answer: Option C
Solution(By Examveda Team)
Original C.P. of the product = Rs. 8.Original manufacturing cost
$$\eqalign{ & = {\text{Rs}}.\left( {\frac{3}{4} \times 8} \right) \cr & = {\text{Rs}}{\text{. }}6 \cr} $$
Original cost of raw material
$$\eqalign{ & = {\text{Rs}}.\left( {8 - 6} \right) \cr & = {\text{Rs}}{\text{. }}2 \cr} $$
New manufacturing cost
$$\eqalign{ & = {\text{Rs}}.\left( {\frac{5}{3} \times 6} \right) \cr & = {\text{Rs}}{\text{. }}10 \cr} $$
New cost of raw material
$$\eqalign{ & = {\text{Rs}}.\left( {\frac{{12}}{5} \times 2} \right) \cr & = {\text{Rs}}{\text{. }}\frac{{24}}{5} \cr} $$
New S.P. of the product
$$\eqalign{ & = {\text{Rs}}.\left( {10 + \frac{{24}}{5}} \right) \cr & = {\text{Rs}}{\text{. }}\frac{{74}}{5} \cr} $$
$$\eqalign{ & \therefore {\text{Desired S}}{\text{.P}}{\text{.}} \cr & = 125\% {\text{ of Rs}}.\frac{{74}}{5} \cr & = {\text{Rs}}{\text{.}}\left( {\frac{{125}}{{100}} \times \frac{{74}}{5}} \right) \cr & = {\text{Rs}}.18.50 \cr} $$
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Related Questions on Profit and Loss
A. 45 : 56
B. 45 : 51
C. 47 : 56
D. 47 : 51
A. Rs. 2600
B. Rs. 2700
C. Rs. 2800
D. Rs. 3000
A. A neither losses nor gains
B. A makes a profit of 11%
C. A makes a profit of 20%
D. B loses 20%
A. Rs. 3,750
B. Rs. 3,250
C. Rs. 2,750
D. Rs. 2,250
Let original cost of raw materials=x
Original manufacturing cost =3x
Cost of product x +3x =4x =8
X=2
Original MC =3★2=6
Original raw materials cost =2
How it become 3/4