Question
The raw material cost of an article is 1/3 of its
manufacture cost. If the cost of manufacturing is decreased in the ratio of 4 : 3 and the cost of its raw material is increased in the ratio of 4 : 5, then overall cost of article reduced by Rs. 4. Find out its initial cost?Solution
Let cost of raw material be = x Then its manufacturing cost = 3x Overall cost = x + 3x = 4x After decreasing manufacture cost its become = 3x/4 × 3 = 9x/4 After increasing raw material cost its become = (x×5)/4 = 5x/4 Then overall cost of article = 9x/4 + 5x/4 = 14x/4 = 7x/2 Difference in cost = 4x - 7x/2 = Rs. 4 (8x-7x)/2 = 4 x = 8 ∴ Then initial cost of the article = x - 3x = 4x = 4 × 8 = Rs. 32
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