A company manufactures computers. The price of computer components has increased by 15% Al the same time, the cost of assembling has gone up to 30% of the components cost from 25% of components' cost. The company is facing a liquidity crunch and cannot afford to pump in more funds. So, it decides to keep the overall cost the same. By approximate what percentage should it reduce its consumption of components to achieve this?
Answers
Solution :
- manufacturer cost 25680
- package charge 520
- actual price = 520+25680
= 26200
- profit = (26200×10)÷100
= 2620
- selling price = actual price + profit
= 26200+2620
- selling price = 28820
Given:
the price of computer gets increased by 15%
Initial cost of assembling is 25 % of cost of component.
Final cost of assembling is 30% of cost of component.
To Find:
By what percent should the consumption be reduced so that overall cost remains same.
Solution:
Let the initial cost = x
Let the initial consumption = N₁
Initial cost of assembling= 1.25x
Initial overall cost= N₁×(x+1.25x)
=N₁(2.25x)
Final Consumption = N₂
Final cost =1.15x
Final cost of assembling= 1.3×1.15x=1.495x
Final overall cost = N₂(1.15x+1.495x)
= N₂(2.645x)
according to question,
Initial overall cost = Final overall cost
N₁(2.25x) = N₂(2.645x)
2.25/2.645 = N₂/N₁
N₁-N₂/N₁=2.645-2.25/2.645
=.1493
Hence the consumption should be decrease by 14.93 %