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    Question

    Assuming that the boutique plans to increase the price

    of Casual Wear by 10% next quarter, and If the same quantity of 600 units is sold at this new price, determine how much the overall profit increases compared to the previous calculations. Direction: A small business, Trendy Boutique , specializes in three types of clothing items: Designer Dresses , Casual Wear , and Formal Suits . Over the past six months, the boutique has recorded sales data as follows: Designer Dresses: Cost Price (CP): ₹1,500, Selling Price (SP): ₹2,200 Casual Wear: Cost Price (CP): ₹800, Selling Price (SP): ₹1,200 Formal Suits: Cost Price (CP): ₹2,500, Selling Price (SP): ₹3,500 The total units sold over six months for each clothing item are as follows: Designer Dresses: 300 units Casual Wear: 600 units Formal Suits: 200 units During this period, the boutique encountered some fluctuations in sales due to seasonal demand, which affected the profit margins for each product category.
    A ₹79,000 Correct Answer Incorrect Answer
    B ₹78,000 Correct Answer Incorrect Answer
    C ₹80,000 Correct Answer Incorrect Answer
    D ₹70,000 Correct Answer Incorrect Answer
    E ₹72,000 Correct Answer Incorrect Answer

    Solution

    New Selling Price for Casual Wear = 1,200 + (10% of 1,200) = 1,200 + 120 = ₹1,320 Total Revenue from selling 600 units = 600 × 1,320 = ₹792,000 overall profit increases = 600 × 1,320 - 600 × 1,200 = 792,000 – 720,000 = 72,000

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