The lowest percentage increase in the cost of dye that would make the scarves unprofitable is 42%
<h3>How to calculate the percentage?</h3>
(Price- Unit Cost)/Price= 20% or 0.2
Price- Unit Cost= 0.2 Price
0.8 Price = Unit Cost
Let Unit Cost be x
Price = x/0.8= 1.25x
Dye is 60% of unit costs= 0.6x
Cost of remaining material= 1 - 0.6x = 0.4x
Unit Cost= Cost of Dye+ Cost of remaining material
So, in order to become unprofitable, Unit Cost must be 1.25x
Therefore
1.25x= Maximum cost of dye+ 0.4x
Maximum Cost of Dye = (1.25-0.4)x = 0.85x
Percentage change in cost of dye= {(0.85x-0.6x)/0.6x}*100= 41.66 or 42%
Therefore, theowest percentage increase in the cost of dye that would make the scarves unprofitable is 42%.
Learn more about percentages on:
brainly.com/question/24877689
#SPJ1
