Question
Assuming the selling prices of Products B and C are
increased by 15% each due to increased demand, calculate the new selling prices and determine the total profit after these adjustments, factoring in the selling price increases. Direction: A manufacturing company produces three products: A, B, and C. The following table summarizes the production details for each product over a period of 5 months, including the cost price (CP), selling price (SP), and units produced each month.Solution
New Selling Price for Product B = 350 + (15% of 350) = 350 + 52.5 = ₹402.5 New Selling Price for Product C = 500 + (15% of 500) = 500 + 75 = ₹575 New Total Selling Price for Products B and C: Product B: 400 × 402.5 = ₹161,000 Product C: 860 × 575 = ₹494,500 Total SP after increase: = 183,000 (Product A) + 161,000 (Product B) + 494,500 (Product C) = ₹838,500 Total Profit = Total SP - Total CP = 838,500 - 480,000 = ₹358,500
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