Question

the production of a printer consists of the cost of raw material at 100 dollars the cost of overheads at 80$ and wages at 120$ if the cost of raw materials and overheads are increased by 11% and 20% respectively while wages are decreased by 15% find the percentage increase or decrease in the production cost of the printer

Answer 1

Answer:

The percentage increase in the production cost of the printer is 3%.

Step-by-step explanation:

We are given that the production of a printer consists of the cost of raw material at 100 dollars the cost of overheads at 80$ and wages at 120$.

Also, the cost of raw materials and overheads are increased by 11% and 20% respectively while wages are decreased by 15%.

Cost of raw material = $100

Cost of overheads = $80

Cost of wages = $120

So, the total cost of the printer = $100 + $80 + $120

                                                   = $300

Now, the increase in the cost of raw material = $100 + 11% of $100

                                                                           = $\ 100 + (\frac{11}{100} \times \ 100)$

                                                                           = $100 + $11 = $111

The increase in the cost of overheads = $80 + 20% of $80

                                                                = $\ 80 + (\frac{20}{100} \times \ 80)$

                                                                = $80 + $16 = $96

The decrease in the cost of wages = $120 - 15% of $120

                                                          = $\ 120 - (\frac{15}{100} \times \ 120)$

                                                          = $120 - $18 = $102

So, the new cost of a printer = $111 + $96 + $102 = $309

Now, the percentage increase in the production cost of the printer is given by;

      % increase =  $\frac{\text{Net increase in the cost of printer}}{\text{Original cost of printer}} \times 100$

                         =  $\frac{\ 309- \ 300}{\ 300} \times 100$

                         =  3%

Hence, the percentage increase in the production cost of the printer is 3%.