Question

A company imported two components X and Y.
It imported X from U.K. and Y from France. It then
assembled those components with other components
to form a machine used in a chemical process.
X made up to 20% of the production cost. Y made up
to 40% of the production cost. Their regular practice
was to sell the machine at 25% above the production
cost. The U.K. pound became 40% costlier and the
French franc became 30% costlier. Owing to these
reasons, the company increased its selling price by
8%. Find the profit percentage, now.
(A) 10% (B) 12.5% (C) 15% (D) 8%​

Answer 1

A company imported two components X and Y. It imported X from U.K. and Y from France. It then  assembled those components with other components  to form a machine used in a chemical process. X made up to 20% of the production cost. Y made up to 40% of the production cost. Their regular practice was to sell the machine at 25% above the production  cost. The U.K. pound became 40% costlier and the  French franc became 30% costlier. Owing to these  reasons, the company increased its selling price by  8%. Find the profit percentage, now.

(A) 10% (B) 12.5% (C) 15% (D) 8%​

Step-by-step explanation:

The Production cost increased by 0.2*40% + 0.4*30% = 20%

The production cost before was 100 and selling  price 125.

Now production cost is 120 and selling price is 125*1.08 = 135

The Profit % = {(135-120)/120}*100% = 12.5 %