Iift 2010 Question 28
This is a detailed step-by-step solution for Iift 2010 Question 28. Understand the concept, common mistakes, and expert tips to solve similar questions in IIFT exam.
IIFT 2010
Let the production cost be Rs. 100
The, Selling Price = Rs. 120
Price of component A = Rs. 10
Price of component B = Rs. 20
Price of other components = Rs. (100 - 10 - 20) = Rs. 70
After increase in prices,
Price of component A = Rs. 12
Price of component B = Rs. 28
Price of other components = Rs. 70
Total Cost of production = Rs. (12 + 28 + 70) = Rs. 110
Selling price = Rs. (1.15 * 120) = Rs. 138
Profit = Rs. 28
Profit % = 25.45%
Hence, option B is the correct answer.