Civil Engineering > GATE 2013 > Quantitative Aptitude
A firm is selling its product at Rs. 60 per unit. The total cost of production is Rs. 100 and the firm is earning a total profit of Rs. 500. Later, the total cost increased by 30%. By what percentage should the price be increased to maintain the same profit level?
Correct : a
Selling Price per unit = ₹60
Total Cost = ₹100
Total Profit = ₹500
Total Revenue = Total Cost + Total Profit
Total Revenue = 100 + 500 = ₹600
Number of units = Total Revenue ÷ Price per unit
Number of units = 600 ÷ 60 = 10 units
New Total Cost after 30% increase = 100 × 1.30 = ₹130
To maintain same profit of ₹500:
New Total Revenue = New Total Cost + Profit
New Total Revenue = 130 + 500 = ₹630
New Price per unit = 630 ÷ 10 = ₹63
Increase in price = 63 − 60 = ₹3
Price increase% = (3 ÷ 60) × 100 = 5%
The price should be increased by 5% (Option A)
Similar Questions
In a locality, the houses are numbered in the following way:The house-numbers on one side of a road are consecutive odd integers starting from 301, while the ho...
For positive integers p and q, with p⁄q ≠ 1,(p⁄q)p⁄q=p(p⁄q-1). Then, _______.
Which one of the given options is a possible value of x in the following sequence?3, 7, 15, x, 63, 127, 255
Total Unique Visitors
Loading......