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A manufacturer makes a profit of 15% by selling a colour television for 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 percent made by the manufacturer.
  • a)
    6.15%
  • b)
    7.15%
  • c)
    6.85%
  • d)
    9.15%
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A manufacturer makes a profit of 15% by selling a colour television fo...
Given:
Profit percentage = 15%
Selling price of the television = Rs. 6900

To find:
Profit percentage after increase in manufacturing cost and retailer price.

Solution:
Let's assume the cost price of the television is Rs. x.

Calculating profit:
Profit = Selling price - Cost price
Profit = Rs. 6900 - x

Profit percentage = (Profit/Cost price) * 100
15 = (6900 - x)/x * 100
15x = 690000 - 100x
115x = 690000
x = 6000

Therefore, the cost price of the television is Rs. 6000.

Increase in manufacturing cost:
New manufacturing cost = Cost price + 30% of Cost price
New manufacturing cost = Rs. 6000 + 30% of 6000
New manufacturing cost = Rs. 6000 + 0.3 * 6000
New manufacturing cost = Rs. 6000 + 1800
New manufacturing cost = Rs. 7800

Increase in retailer price:
New selling price to retailer = Selling price + 20% of Selling price
New selling price to retailer = Rs. 6900 + 20% of 6900
New selling price to retailer = Rs. 6900 + 0.2 * 6900
New selling price to retailer = Rs. 6900 + 1380
New selling price to retailer = Rs. 8280

Calculating new profit:
New profit = New selling price to retailer - New manufacturing cost
New profit = Rs. 8280 - Rs. 7800
New profit = Rs. 480

New profit percentage = (New profit/Cost price) * 100
New profit percentage = (480/6000) * 100
New profit percentage = 8%

Therefore, the profit percentage made by the manufacturer after the increase in manufacturing cost and retailer price is 8%.
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Community Answer
A manufacturer makes a profit of 15% by selling a colour television fo...
Let the original cost to the manufacturer = Rs. c
So, 6900 = 1.15c
Or, c = 6000
New cost to the manufacturer = Rs. (1.30 × 6000) = Rs. 7800
Price paid by the retailer to the manufacturer = Rs. (1.20 × 6900) = Rs. 8280
Let the new profit percent earned by the manufacturer = Rs. 8280 - Rs. 7800 = Rs. 480
Thus, the manufacturer makes a profit of 6.15%.
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