Q 5 The price of raw materials has gone up by 15 labour cost has also increased from 25 of

Let the initial total price be Rs. 100. Then increase by 15% in raw materials causes "100 --> 115". Now, labour cost of 25% becomes 30%, implies increase in 25% by 20%. Thus increase 115 by 20% and you get 128.
Visualize this as:

100 ----> 115 ----> 128

There has been an increase of "28%" from the initial 100 we had. Thus, answer is "C. 28%"
10 years agoHelpfull: Yes(7) No(16)
C. 28%
If cost of raw material=x, labour cost=0.25x
Now if cost of raw material=1.15x, labour cost=0.3*1.15x=0.345x
% decrease reqd. to bring down labour cost from 0.345x to 0.25x
=100-[(0.25x/0.345)*100]=100-72.46= 27.53
10 years agoHelpfull: Yes(6) No(9)
Let the initial cost of raw material be 100. So, initial labour cost was 25 and net cost was 125.
Now,
15% increment in raw materials cost and labour cost has gone up to 30% from 25 %.
Raw material cost = 115. And
Labour cost = (115 *30) = 34.5
So, New net cost,
= 115 + 34.5 = 149.5
%reduction = 24.5/149.5 = 17%(approx.)
7 years agoHelpfull: Yes(2) No(1)
can anyone explain this question properly
7 years agoHelpfull: Yes(0) No(0)
let initial cost=100
labour cost=25
total cost =125
now, 15% increase in raw materials, labour increases from 25 to 30%
ie, 30% of 15% increase in initial cost=30*115/100=34.5
new cost=115+34.5=149.5
reduction in usage of materials is 149.5-125=24.5
% reduction =24.5*100/149.5=17% app
7 years agoHelpfull: Yes(0) No(1)

Q 5. The price of raw materials has gone up by 15%, labour cost has also increased from 25% of the cost of raw material to 30% of the cost of raw material. By how much percentage should there be a reduction in the usage of raw materials so as to keep the cost same

A. 17%

B. 24%

C. 28%

D. 25%