Question

When the per unit production cost of an item is Tk. 80 and other costs per unit is Tk 20, the producer makes a profit of 15% on his total cost. If the production cost decreases by 20% and the selling price remains the same, calculate the profit

explanation please.​

Answer 1

Answer:

31

Step-by-step explanation:

Cost Price = Total cost of production of one unit = Tk.100

Profit percentage = 15%

Therefore, Selling Price = 115% of Cost Price = * 100 = Tk.115

New production cost = 80% of 80 = Tk.64

New Cost Price = 64 + 20 = Tk.84

Since the selling price remains the same, Profit = 115 – 84 = 31.