Question

A publisher sells a book for ₹ 168 at a profit of 20% if its cost of production increases by 30% what should be the increase in the price of the book so that this percentage profit remains the same

Answer 1

since selling price = 120% of C.P
implies 168= (120/100)*C.P
C.P.=168*100/120=140

when it increased by 30%
it will be 140+140*(30/100)
=182 Rs
now the cost price is 182 Rd
and profit is same which is 20%
hence NOW the Selling price be = 120%*182=218.40 Rs

Answer 2

Answer:

Given, SP1 = Rs 168

Profit = 20%

Hence, SP1 is 120% of CP1

=>168 = \frac{120}{100}

100

120

×CP1

=>CP1 = 168×5/6

=28×5 = 140

Now, cost of production is increased by 30%

So, new cp, CP2 = 140×\frac{130}{100}

100

130

= 14×13 = 182

As per question, new profit percentage should be same as previous .

Hence new SP, SP2 = CP2 ×120%

= 182 ×\frac{120}{100}

100

120

= 182 ×1.2 = 218.4

Increase in price of box = SP2-SP1

= 218.4 -168

= 50.4

Ans : Rs 50.40