1.

In the production of fans three types of costs are involved. Cost of raw material, expenditure on labour and miscellaneous costs. Ratio of expenditure on these cost in one year is 4 : 3 : 3. In the next year cost of raw material increased by 10%, expenditure on labour increased by 6% and miscellaneous expenditure decreased by 5%. Find the percentage rise in the cost of fan.1). 6.3%2). 8.1%3). 4.3%4). 4%

Answer»

Three TYPES of cost are cost on RAW material, labour cost and miscellaneous cost

Ratio of expenditure on these cost is 4 : 3 : 3

Let the cost of the raw material be 4x.

Then increase in cost of raw material = 10% of 4x = 0.4x

Let the expenditure on the labour be 3x

Then increase in expenditure on the labour = 6% of 3x = 0.18x

Let the expenditure on the miscellaneous cost be 3x

Then DECREASE in miscellaneous cost be = 5% of 3x = 0.15x

Total increase in expenditure = 0.4x + 0.18x – 0.15x = 0.43x

Now, the percentage rise $(= \;\frac{{0.43x}}{{10x}} \TIMES 100 = 4.3)$

Thus, the percentage rise in the cost of fan is 4.3%


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