Get Advice on Live Video Call
Earn $ Cash $ with
consultations on Bissoy App

Previously, the manufacturing cost of a product was thrice the cost of raw material. Now the cost of raw material increases in the ratio 5 : 12 and manufacturing cost increases in the ratio of 3 : 5. The previous cost of the product was Rs. 8. What should be the present selling price so that 25% profit can be made?

Correct Answer: Rs. 18.50
Original C.P. of the product = Rs. 8.
Original manufacturing cost
$$\eqalign{ & = {\text{Rs}}.\left( {\frac{3}{4} \times 8} \right) \cr & = {\text{Rs}}{\text{. }}6 \cr} $$
Original cost of raw material
$$\eqalign{ & = {\text{Rs}}.\left( {8 - 6} \right) \cr & = {\text{Rs}}{\text{. }}2 \cr} $$
New manufacturing cost
$$\eqalign{ & = {\text{Rs}}.\left( {\frac{5}{3} \times 6} \right) \cr & = {\text{Rs}}{\text{. }}10 \cr} $$
New cost of raw material
$$\eqalign{ & = {\text{Rs}}.\left( {\frac{{12}}{5} \times 2} \right) \cr & = {\text{Rs}}{\text{. }}\frac{{24}}{5} \cr} $$
New S.P. of the product
$$\eqalign{ & = {\text{Rs}}.\left( {10 + \frac{{24}}{5}} \right) \cr & = {\text{Rs}}{\text{. }}\frac{{74}}{5} \cr} $$
$$\eqalign{ & \therefore {\text{Desired S}}{\text{.P}}{\text{.}} \cr & = 125\% {\text{ of Rs}}.\frac{{74}}{5} \cr & = {\text{Rs}}{\text{.}}\left( {\frac{{125}}{{100}} \times \frac{{74}}{5}} \right) \cr & = {\text{Rs}}.18.50 \cr} $$

The cost of raw materials 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 percentage was one - fourth the original manufacturing cost, find the approximate new profit percentage.

Profit on selling 10 candles equals selling price of 3 bulbs. While loss on selling 10 bulbs equal selling price of 4 candles. Also profit percentage equals to the loss percentage and cost of a candle is half of the cost of a bulb. What is the ratio of selling price of candles to the selling price of a bulb?

If the labour cost 20% of the cost of production and raw material cost 10% of the cost of production and the price on which article is sold is 20% above the cost of production. If the price of labour is increased by 40% and the price of raw material increased by 20% and rest other expenditure of cost remain constant. The industrythus decide to increase the selling price by 10%. Find the new profit percent ?

A shopkeeper has 11 books of same cost price. He sells the first book at certain price, then he sells second book at a price which is Rs. 1 less than the selling price of first book and then he sells third book at a price which is Rs. 1, less than the selling price of second book. Following this pattern, he sold all 11 books. If he sells sixth book at its cost price. Find the over-all percent profit or loss on selling all 11 books = ?

"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?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."

"S produces and sells one product, P, for which the data are as follows:
Selling price Rs 28
Variable cost Rs 16
Fixed cost Rs 4
The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due to market changes both the selling price and the variable cost are expected to increase above the budgeted level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must sales volume change, compared with the original budgeted level, in order to achieve the original budgeted profit for the period?"

One trader calculates the percentage of profit on the buying price and another calculates on the selling price. When their selling price are the same then the difference of their actual profits is Rs. 85 and both claim to have made 20% profit, what is the selling price of each ?

Statement : One of the problems facing the food processing industry is the irregular supply of raw material. The producers of raw material are not getting a reasonable price.

Courses of Action :
I. The government should regulate the supply of raw material to other industries also.
II. The government should announce an attractive package to ensure regular supply of raw material for food processing industry.

The price of raw materials has gone up by 15%, labor cost has also increased from 25% of the cost of raw material to 30% of the cost of raw material. By how much percentage should there be reduction in the usage of raw materials so as to keep the cost same?

There are two shopkeepers, first shopkeeper calculates his profit percent on the selling price whereas the second shopkeeper calculates his profit percent on the cost price. If the selling price for both the shopkeeper is same and the difference between their profits is Rs.175. Then, calculate the sum of the cost price for both the shopkeeper if the profit percent for the both shopkeeper is 25%?