Question

A manufacturer makes a profit of 15% by selling a colour T.V colour for Rs.5750.If the cost of manufacturing increases by 30% and the price paid by the retailer is increased by 20%,find the profit percent made by the manufacturer.Please answer fast with all steps

Answer 1

For the manufacturer
Profit% = (SP-CP)/CP *100
15/100 = (5750-CP)/CP
0.15*CP = 5750 - CP
1.15*CP = 5750
CP = Rs 5000

Now, if CP increased by 30%
i.e. CP' = CP + 30%CP
CP' = 5000 + 0.3*5000 = Rs 6500

Also, the SP increases by 20%
hence SP' = 5750 + 20% of 5750 =Rs 6900

hence new profit = SP' - CP' = 400
hence, profit % = Profit/CP' *100 = 400/6500 *100 = 6.15%