A Company in Oman imports two components A and B from Germany and China respectively and assembles them with other components to form a toy. Component A contributes to RO 10 of production cost. Component B contributes to RO 20 of the 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 RO 20 costlier and component B became RO 40 costlier. Owing to these reasons the company increased its selling price by RO 15. Considering that cost of other components does not change, what will be the Profit if the toy is sold at the new price?
What do you think about depreciation? Take four different types of assets and analyze their depreciation along with the reasons in the real world.
Every business try to keep their customer happy by providing them some relaxation. This can be done with the help of some discounts. How many discounts can a trader give to other party? Explain with suitable examples and formulas.