Answer:
The cost of producing the article is -3500 (Negative cost)
Step-by-step explanation:
The given parameters are
The ratio of the profit to material cost to production labor = 5:7:13
The amount of the material cost = 840 + Labor cost
Let the total cost = X
Therefore, we have;
The fraction of the total cost that is material cost = 7/(5 + 7 + 13) = 7/25
Therefore, the material cost = 7/25 × X
The fraction of the total cost that is labor cost = 13/(5 + 7 + 13) = 13/25
Therefore, the labor cost = 13/25 × X
However, the amount of the material cost = 840 + Labor cost, which gives;
7/25 × X = 13/25 × X + 840
7/25 × X - 13/25 × X = 840
-6/25 × X= 840
X = 840/(-6/25) = 840×(-25/6) = -3500
The cost of producing the article = -3500.
