1.

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%

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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