Question

d) The cost of a piece of furniture consists of the cost of wood at $600, the cost of paint at $400 and
wages at $400. If the costs of wood and paint are increased by 12% and 7% respectively, while wages
are decreased by 10%, calculate the percentage increase or decrease in the cost of the furniture

Answer 1

Answer:

4.286%

Step-by-step explanation:

Initial cost of furniture = $600 + $400 + $400 = $1 400

If percentage increase in wood is 12%,

The value of the increase is $\frac{12}{100}$ × 600

                                            = $72

∴ The new price of the wood is $672.

If the percentage increase in paint is 7%,

The value of the increase is $\frac{7}{100}$ × 400

                                            = $28

∴ The new price of the paint is $400 + $28 = $428

If the percentage decrease in wages is 10%,

The new amount for wages is given by ( $\frac{10}{100}$ × $400 ) + $400

                                                             =  $400 - $40

                                                             = $ 360

Therefore, the final amount for the furniture is $360 + $428 + $672

                                                                           = $ 1 460

Since there is profit, it would be percentage increase.

The percentage increase is calculated by

            $\frac{Profit}{Cost price}$ × 100%  

         = $\frac{60}{1400}$ × 100%

         = 4.285714286%