Question

The ratio of the profit, material cost and production labour of an article is 5:7:13.

Answer 1

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.