When a cycle manufacturer reduced selling price of cycle by 50%, the number of bicycles sold radically increased by 600%. Initially the manufacturer was getting only 140% profit. What is the percentage increase of his profit?
(a) 10%
(b) 14%
(c) 0%
(d) Cannot be determined
(e) None of these
Answers
Answered by
0
the correct answer is 14 %
Answered by
19
Answer:
the percentage increase of his profit is C) 0%
Step-by-step explanation:
Let the Cost Price of 1 bicycle = Rs 100
=> initial profit = 140 % of 100 = Rs 140
=> Selling price = 100 + 140 = 240
=> New selling price = 50% of 240 = Rs 120
Numbers of bicycle sold in new SP = 1 + 6 = 7 units
=> Net selling price = 120 x 7 = 840
=> Net cost price = 100 x 7 = 700
=> Net new profit = 840 - 700 = 140
Hence the profit remains same, So option C) 0 % is the correct answer
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