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A company imports component $A$ from Germany and component $B$ from USA. If then assembles them along with other components to produce a machine used in a chemical process. Component $A$ contributes $30$% to the production cost and component $B$ contributes $50$% to the production cost. The current practice is to sell the machine at a price that is $20$% over the production cost. Due to foreign exchange fluctuations the German Mark has become costlier by 30% and the US Dollar by $22$%. But the company is unable to increase the selling price by more than $10$%.

The current margin of profit is:

  1. 10%
  2. 15%
  3. 12%
  4. 8%

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