the cost of production of a radio set is rupees 900 , divided between material, labour and overheads in the ratio 3:4:2 . calculate the cost of0 material used in the radio set is marked at a price that clears 20% profit on the cost price , what is the marked price of the set? subsequently , the cost of material , labour and overheads increases by 20%,30% and 10%.res. calculate the cost of manufacture now and the marked price to clear the same %profit as before.
To calculate the cost of material used in the radio set, we need to determine the amount allocated to material in the given cost ratio.
Given: Cost of production = Rs. 900
Ratio of material: labour: overheads = 3:4:2
Step 1: Calculate the amounts allocated to each component.
Let's assume the ratio multiplier as 'k'.
Material = (3k)
Labour = (4k)
Overheads = (2k)
Step 2: Find the value of 'k'.
The sum of the ratio parts is (3 + 4 + 2) = 9.
Since the total cost is Rs. 900, we can set up the equation:
(3k + 4k + 2k) = 900
9k = 900
k = 100
So, Material = (3k) = (3 * 100) = Rs. 300 (allocated to material)
Now, let's calculate the marked price of the set by adding a 20% profit on the cost price.
Step 3: Calculate the selling price (cost price + profit).
Profit percentage = 20%
Cost price = Rs. 900
Profit = (Profit percentage/100) * Cost price
Profit = (20/100) * 900 = Rs. 180
Selling price = Cost price + Profit = Rs. (900 + 180) = Rs. 1080
Therefore, the marked price of the radio set is Rs. 1080.
Moving on to the subsequent scenario, where the cost of material, labour, and overheads increase by 20%, 30%, and 10%, respectively.
Step 4: Calculate the increased amounts after the given percentage increase.
Increase in material cost = (20/100) * 300 = Rs. 60
Increase in labour cost = (30/100) * (4k) = (30/100) * 400 = Rs. 120
Increase in overhead cost = (10/100) * (2k) = (10/100) * 200 = Rs. 20
Incremented material = 300 + 60 = Rs. 360
Incremented labour = 400 + 120 = Rs. 520
Incremented overheads = 200 + 20 = Rs. 220
Step 5: Calculate the new cost of production.
New cost of manufacture = Incremented material + Incremented labour + Incremented overheads
New cost of manufacture = Rs. (360 + 520 + 220) = Rs. 1100
Lastly, let's calculate the new marked price to clear the same percentage profit as before (20%).
Step 6: Calculate the new profit based on the increased cost of production.
New profit = (Profit percentage/100) * New cost of manufacture
New profit = (20/100) * 1100 = Rs. 220
Step 7: Calculate the new selling price.
New selling price = New cost of manufacture + New profit
New selling price = Rs. (1100 + 220) = Rs. 1320
Therefore, the new marked price to clear the same 20% profit is Rs. 1320.