Explanation
1. Extract Initial Data from the Pie Chart:
Based on the "Sale Price Break-up of Car" in image_0112fa.png:
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Selling Price (Total): Rs.100,000.
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Margin (Initial Profit): 10% of Sale Price =0.10×100,000=Rs.10,000.
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Total Cost: Since Sale Price=Cost+Margin, then Total Cost=100,000−10,000=Rs.90,000.
2. Calculate New Cost:
All component costs (Chassis, Transmission, Engine, and Miscellaneous) increase by 10%.
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New Total Cost =Initial Cost+10% of Initial Cost
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New Total Cost =90,000+(0.10×90,000)
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New Total Cost =90,000+9,000=Rs.99,000
3. Calculate New Profit:
The selling price remains the same (Rs.100,000).
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New Profit =Selling Price−New Total Cost
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New Profit =100,000−99,000=Rs.1,000
4. Calculate the Percentage Reduction in Profit:
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Reduction in Profit Amount =Initial Profit−New Profit
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Reduction in Profit Amount =10,000−1,000=Rs.9,000
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Percentage Reduction =(Initial ProfitReduction Amount)×100
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Percentage Reduction =(10,0009,000)×100=90%
Conclusion:
The profit will be reduced by 90%.
Correct Option: (b) 90%
