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The price of raw ingredients has increased by 10% and labour charge also increased from 15% of cost of raw ingredients to 20% cost of raw ingredients. To keep price same by how percentage there should be reduction in raw ingredients?1). 20.87%2). 16.66%3). 12.87%4). 13.45% |
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Answer» Let the initial price of RAW INGREDIENTS be 100. Given, price of raw ingredients has INCREASED by 10%, New price of raw ingredients = 100 + 100 × 10/100 = 110 Then, Initial labour charge = Rs. 15 Initial total cost = 100 + 15 = 115 New labour charge = 110 × 20/100 = 22 Total cost for same usage of raw ingredients = 110 + 22 = 132 Required reduction to KEEP cost same = [(132 - 115)/132] × 100 = 12.87% ∴ To keep cost same, there is 12.87% reduction in raw ingredients. |
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