MCQOPTIONS
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| 1. |
A small and medium enterprise imports two components A and B from Taiwan and China respectively and assembles them with other components to form a toy. Components A contributes to 10% of production cost while components B contributes to 20% of production cost. Usually the company sells this toy at 20% above the production cost. Due to increase in the raw material and labour cost in both the countries ,component A became 20% costlier and components B became 40% costlier. Owing to these reasons the company increased its selling price by 15%. Considering that cost of other components does not change. What will be the profit percentage if the toy is sold at the new price? |
| A. | 5.5% |
| B. | 5.5% |
| C. | 5.5% |
| D. | 0% |
| Answer» C. 5.5% | |