GATE ECE 2014 Set 4 | GA | Question: 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 $20 \%$. What is the percentage increase in total cost for the company in $2013$?

Comments

Raw Material Share: $20\%$

All Other Expenses Share: $100\% - 20\% = 80\%$

In 2013

Raw material expense increases by $30\%$:

$\text{Contribution to total increase} = 20\% \times 30\% = 6\%$

All other expenses increase by $20\%$:

$\text{Contribution to total increase} = 80\% \times 20\% = 16\%$

$\text{Total Percentage Increase} = 6\% + 16\% = 22\%$

 

Answer 1

$\%$ increase $= 30\%$ of raw material costs $+\; 20\%$ of (labor costs + transportation costs + plant and machine costs + energy costs)

$\quad \quad = 30\%$ of $20\%$ of total costs $+20\%$ of $(15\%+10\%+30\%+25\%)$ of total cost

$\quad \quad =30\%$ of 20% of total costs $+ 20\%$ of $80\%$ of total costs

$\quad \quad = 110\%$ of $20\%$ of total costs

$\quad \quad = 1.1 \times 20\%$ of total cost

$\quad \quad = 22 \%$ of total cost

Answer 2

2012:

Given Expenditure on Labour is 450000, which is 15% of total cost(From Pie Chart). then

Total Cost (X) => 15% of X =  450000  ==> X = 3000000

So, Expenditure on Transportation will be 10 % of X = 300000

Expenditure on plan and Machinery will be 30% of X = 900000

Expenditure on Energy will be 25% of X = 750000

Expenditure on raw material will be 20% of X = 600000

2013:

New Expense in Raw Material will be 30% more than last year expense : 600000 + (30% of 600000) = 780000 

New Expense in Labour will be 20% more than last year expense : 450000 + (20% of 450000) = 540000

New Expense in Transportation will be 20% more than last year expense : 300000 + (20% of 300000) = 360000

New Expense in Plant and Machinery will be 20% more than last year expense : 900000 + (20% of 900000) = 1080000

New Expense in Energy will be 20% more than last year expense : 750000 + (20% of 750000) = 900000

Total Cost in 2013 = (7.8 L + 5.4 L + 3.6 L +10.8 L + 9 L ) = 3660000

Total Increase in cost = (3660000 - 3000000) = 660000

Total % increase in cost = ((660000)/3000000)*100 = 22%.

Answer will be 22%.

Comments

Hello rude

We don't need that much calculation.

after calculating raw material for 2012 , we can get other total expenditures just by subtracting from total and then do solve on this for 2013

and other ways are answered below

Answer 3

%increase in total cost = ((0.2*0.3*(3*10^6)+0.8*0.2*(3*10^6))/(3*10^6))*100

                                   = 22%