Question

A publishers sales a book for Rs 168 at a profit of 20% if his cost of production increased by 30% what should be the increase in the price of the book so that his percentage profit remains the same.

Answer 1

Let the initial cost of production be x.
Percentage of Profit of the Publisher = 20%
Profit of the Publisher= Rs. 168
Therefore,
x+ (20% of x) = 168
x + x/5 = 168
(5x + x)/5 = 168
6x/5 = 168
x = (168x5)/6
x = 140

Initial Cost of Production = ₹140
Increase in Cost Of Production = 30% of 140
= 42
Final Cost of Production = ₹182
Profit Percentage of the publisher = 20% of 182
Profit of the Publisher = (20/100)x182 = 36.4

Final Price of the book = ₹218.4