Comprehension

Directions for questions: Read the information given below and answer the questions that follow :

A company purchases components A and B from Germany and USA respectively. A and B form 30% and 50% of the total production cost. Current gain is 20%. Due to change in the international scenario, cost of the German Mark increased by 30% and that of USA Dollar increased by 22%. Due to market conditions the selling price cannot be increased beyond 10%. Then

CAT/1998

Question . 86

If the USA Dollar becomes cheap by 12% over its original cost and the cost of German Mark increased by 20%. The selling price is not altered. What will be the gain?