Instructions
Read it carefully and answer Five Questions.
Total cost of production of a firm is ₹ 250 lakh. Following pie-chart shows the percentage of costs of production in different purposes.
Letters A, B, C, D represent the following:
A = Cost of raw materials
B = Cost of packing materials
C = Cost of labour
D = Maintenance cost
Solution
Packing Cost$$=\frac{25}{100}\times250=62.5$$ lakh
Given, packing cost is increased by 2%
$$=$$> New Packing Cost$$=\frac{102}{100}\times62.5=63.75$$ lakh
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