The prime cost of an article was four times the value of material used. The cost of raw materials was increased in the ratio 3 :
4 and the productive wage was decreased in the ratio 4 : 5. Find the present prime cost of an article, which could formerly be made for Rs. 540
1 answer:
Answer:
Step-by-step explanation:
The prime cost = 4 times the value of material used
Former Prime cost = 540
Value of material = 540 / 4 = Rs. 135
Since ;
Prime cost = raw material + wages
540 = 135 + wages
Wages = 540 - 135
Wages = 405
Increase in raw material ; 3 : 4
New cost of raw materials = (4/3) * 135 = 180
Decrease in wage ; 4 : 5
New wage = 4/5 * 405 = 324
New prime cost :
180 + 324
= 504
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