Question

In 2001 the total cost of manufacturing an article was sh.1250 and this was divided between the cost of materials was doubled,labour cost increased by 30% and transport costs increased by 20%.calculate the cost of manufacturing the article bin 2004

Answer 1

The cost of manufacturing the article bin 2004 will be 1875.

What is Percentage Increased ?

Percentage increase is the ratio of increase to the initial value in percentage.

Given that In 2001 the total cost of manufacturing an article was sh.1250 and this was divided between the cost of materials was doubled, labor cost increased by 30% and transport costs increased by 20%

Given that in 2001, the cost of manufacturing = 1250

If this cost was divided between the Material, labor, and transportation equally, then, cost for each sector will 1250/3 = 416.67

• cost of materials was doubled, that is 416.67 x 2 = 833.33

• labor cost increased by 30% , that is 130/100 x 416.67 = 541.67

• transport costs increased by 20% that is, 120/100 x 416.67 = 500

The cost of manufacturing = 833.33 + 541.67 + 500

The cost of manufacturing = 1875

Therefore, the cost of manufacturing the article bin 2004 will be 1875.

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