Discussion

Explanation:

Let initial production cost be 100.

Then cost of A = 10 and cost of B = 20

Selling price = 120

∴ Cost of rest =100 – Cost of A – Cost of B

= 100 – 10 – 20 = 70

New cost of A = 1 + 20100 × 10 = 12

New cost of B = 1 + 40100 × 20 = 28

∴ New cost = 28 + 12 + 70= 110

New selling price = 1+15100 × original selling price

1+15100 × 120

= 138

New profit = New SP-New CPNew CP × 100

138-110110 × 100

≈ 25.5%

Hence, option (b).

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