The Food and Beverage unit of Pepsi-co India produces
1,00,000 chips packets per annum. If each packet is being
sold at 10 and the cost of raw material is 1 per packet,
the cost of manufacturing and labour is 32 per packet. The
maintenance and marketing cost is 31 per packet. Ten percent
taxes are being paid on selling price of the packet. Based on
this information, answer the following questions.
8. If government increased taxes from 10% to 20%
and cost of raw material also increased by 100%,
then find the percentage increase in selling price per
packet of chips to maintain the same profit.
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