Question

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

Answer 1

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