Question

The cost of crude material and the
processing cost of a product increase by
30% and 20% respectively, whereas the
selling price increases by 60%. The
crude material and the processing cost,
initially contributed 40% and 60% of the
aggregate cost respectively. If the
original profit was one-fourth the
original processing cost, find the new
profit percentage.
(a) 48.38%
(b)45%
(C) 43.88%
(d) 36.36%

Answer 1

Answer:

48.38 %

Step-by-step explanation:

Let say Earlier total Cost = 100C

crude material Cost = (40/100)100C = 40C

processing cost = (60/100)100C = 60C

Earlier Profit = 60C/4 = 15C

Earlier Selling Price = 100C + 15C = 115C

cost of crude material  increase by 30%  

New  cost of crude material  = 40C + (30/100)40C = 52C

New  Processing  = 60C + (20/100)60C = 72C

New Cost = 52C + 72C = 124C

selling price increases by 60%

=> New Selling Price = 115C + (60/100)115C  = 184C

New Profit = 184C - 124C  = 60C

New Profit % = (60C/124C) * 100  = 48.38 %

the new profit percentage = 48.38 %