Problema Solution
A publisher sells a book for rs 168 at a profit of 20%.if his cost of production increases by 30%,what should be the increase in the price of the book so that his percentage profit remains the same?
Answer provided by our tutors
let the original price = x
so selling price = 20% of x + x = 168
which gives x = 140
Now this increases by 30%
New production cost = 1.3(140) = 182
profit of 20% => the selling price = 1.2(182) = 218.40
so the increase in price = 218.40-168 = Rs 50.4