Cost of producing an article is made up as follows:Labour:65%,Material:35%.It is sold at a profit of 50%.If labour costs increases by 20% and if the sp is increased by 30%,the profit is still 50%.Find the % change in material cost.

• ANS: MATERIAL COST IS DECREASED TO 10%.
  LET NEW MATERIAL COST IS x% OF CP
  SP=150/100*CP
  CP=.65*CP+.35*CP
  NEW CP=.85CP*.x*CP
  NEW SP=1.3*1.5*CP=.85CP*.x*CP
  x=10
• 9 years agoHelpfull: Yes(0) No(1)
• let cp=100
  then labour(65%)=65
  material(35%)=35
  sold at profit of 50% then sp=150;
  now labour cost increase by 20% then 65+.2*65=78;
  now sp is increased by 30% then new sp=150+.3*150=195
  still profit of 50% then cp=195/1.5=130;
  material cost =new cp-laour=130-78=52
  increased in material cost =((52-35)/35)*100=48.5%
• 9 years agoHelpfull: Yes(0) No(0)