GATE2014 EC-3: GA-9

Question

A firm producing air purifiers sold $200$ units in $2012$. The following pie chart presents the share of raw material, labour, energy, plant & machinery, and transportation costs in the total manufacturing cost of the firm in $2012$. The expenditure on labour in $2012$ is Rs.$4,50,000.$ In $2013$, the raw material expenses increased by $30\%$ and all other expenses increased by $20\%.$ If the company registered a profit of Rs.$10$ lakhs in $2012$, at what price (in Rs) was each air purifier sold? 

Comments

Total cost spent on 200 purifiers = 30 lakh
Profit = 10 lakh
total sell = 40 lakh, items sold = 200,
Selling Price/ Item $= 40 lakh/200 = 20,000/-$

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All the 2013 information given is irrelevant.

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@JashanArora Question is having 2 parts

Answer 1

Expenditure on labour $=Rs. 4,50,000$
So, $15\%$ of total expenditure $=Rs. 4,50,000$

Then, total $(100\%)$ of expenditure $=  Rs. 4,50,000 \times \frac{100\%}{15\%} =Rs. 30,00,000$

Now, Profit $= Rs.10,00,000$

Total selling cost $= Rs.30,00,000 + 10,00,000=Rs.40,00,000.$

So, $200$ air purifier selling cost $Rs. 40,00,000$

$1$ air purifier selling cost $=\frac{Rs. 40.00,000}{200}=Rs. 20,000$

Comments

why u add 1000000 to total selling price ??

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Selling price=Cost price+ Profit