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Abdul has 8 factories, with different capacities, producing boutique kurtas. In the production process, he incurs raw material cost, selling cost (for packaging and transportation) and labour cost. These costs per kurta vary across factories. In all these factories, a worker takes 2 hours to produce a kurta. Profit per kurta is calculated by deducting raw material cost, selling cost and labour cost from the selling price (Profit = selling price - raw materials cost - selling cost - labour cost). Any other cost can be ignored.
Which of the following options is in decreasing order of raw materials cost per kurta?
ProfitĀ = selling price - raw materials cost - selling cost - labor costĀ
Hence, raw materials cost =Ā selling price - profit - selling cost - labor costĀ
A worker takes 2 hour to produce a kurta.
Labor cost for Kurta = 2 * (Labor cost/ hour)
Raw materials cost per Kurta
for factory 2,Ā Ā 5300-800-45-400*2 = 3655
for factory 3,Ā Ā 5800-900-60-550*2Ā = 3740
for factory 4,Ā Ā 5500-800-68-450*2Ā = 3732
for factory 5,Ā Ā 5400-600-75-600*2Ā = 3525
for factory 6,Ā Ā 6000-875-65-400*2 = 4260
for factory 7,Ā Ā 4900-500-85-350*2 = 3615
for factory 8,Ā Ā 5300-600-70-420*2 = 3790
