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Two items A and B have equal cost price. Item A is sold at 40% profit and item B is sold at an amount 20% less than the selling price of item A. If the total profit is 156 Rs then find the cost price of A.

Correct Answer: Rs. 300

Let the cost price of A as well as B is 100 Rs. Then, ATQ: Selling Price of A = 100+40 = 140 And Selling Price of B = 140 - (140*0.2) = 140 - 28 = 112 Total selling price = 140+112 = 252 Rs. Total Cost price = Rs. 200 So by taking cost price = 100 Rs. Total profit = 52 Rs. Total profit will be Rs. 156 when cost price = (100/52)*156 = Rs. 300.

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"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
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Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
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Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."

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