Multiple choice

A manufacturer makes a profit of 15% by selling a colour TV worth Rs. 6900. If the cost of manufacturing increases by 30% and the price paid by the retailer is increased by 20%, then find the profit per cent made by the manufacturer.

  1. 6%

  2. 6.15%

  3. 6.75%

  4. 7%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Original cost price (CP) = 6900 / 1.15 = 6000. New CP = 6000 * 1.3 = 7800. New selling price (SP) = 6900 * 1.2 = 8280. Profit = 8280 - 7800 = 480. Profit percentage = (480 / 7800) * 100 = 6.1538%.

AI explanation

Using the relation Selling Price = Cost Price * (1 + Profit/100), the original manufacturing cost is 6900 / 1.15 = Rs. 6000. The new manufacturing cost increases by 30% to 7800, and the new selling price increases by 20% to 6900 * 1.20 = 8280. The new profit percentage is calculated as ((8280 - 7800) / 7800) * 100, which equals 600/78 or 6.15%.

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