Aptitude Discussion

Q. |
The cost of raw material of a product increases by $30%$, the manufacturing cost increases by $20%$ and the selling price of the product increases by $60%$. The raw material and the manufacturing cost, originally, formed $40%$ and $60%$ of the total cost respectively. If the original profit $%$ was one-fourth the original manufacturing cost, find the approximation new profit percentage. |

✔ A. |
$48.39\%$ |

✖ B. |
$54.68\%$ |

✖ C. |
$62.48\%$ |

✖ D. |
$42.36\%$ |

**Solution:**

Option(**A**) is correct

Let the total initial cost of the product be Rs 100.

Manufacturing cost = Rs 60

Raw materials cost = Rs 40

Also, original selling price

$=$ Rs$100+\dfrac{60}{4}=$ Rs 115

New raw material cost

$=$ Rs $40+30\%$ of $40 =$ Rs $52$.

New manufacturing cost

$=$ Rs $60+20\%$ of $60=$ Rs $72$

New cost of the product = Rs124

New selling price

$=115+60\%$ of $115= $Rs $184$

New profit percentage

\(=\dfrac{60}{124}\times 100\)

\(=48.38\%\)