Answer:
The tea seller's profit percentage after the price increase is 122.22%.
=> The tea seller's profit percentage actually increased after the price increase, even though the cost of ingredients increased by 25%. This is because the tea seller was able to pass on the increased costs to consumers by raising the price of tea.
Step-by-step explanation:
To calculate the profit percentage of the tea seller after the price increase, we can use the following formula:
Profit percentage = (Profit / Cost price) * 100
Before the price increase:
Selling price = Rs. 9 per cup
Profit percentage = 50%
Profit per cup = Selling price * Profit percentage
Profit per cup = Rs. 9 * 50/100
Profit per cup = Rs. 4.50
Cost price = Selling price - Profit per cup
Cost price = Rs. 9 - Rs. 4.50
Cost price = Rs. 4.50
After the price increase:
Selling price = Rs. 10 per cup
Cost price = Rs. 4.50 (increased by 25%)
Profit per cup = Rs. 10 - Rs. 4.50
Profit per cup = Rs. 5.50
Profit percentage = (Profit / Cost price) * 100
Profit percentage = (Rs. 5.50 / Rs. 4.50) * 100
Profit percentage = 122.22%