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Instructions

Answer the questions based on the following information. In the following chart, the price of logs shown is per cubic metre that of plywood and saw timber is per tonne.

Question 28

In the previous question, if in 1994, prices increased by 5%, 1% and 10% while the volume sales break-up was 40%, 30% and 30% for plywood, saw timber and logs respectively, then what was the average realisation?

Solution

In this case the average realization will be-

$$\frac{(4\times 5.26 \times 1.05)+(3 \times 14.28 \times 1.01)+(3 \times 20 \times 1.1)}{4+3+3} \approx 13.15$$

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