Question

In 1970 the cost of producing a litre of milk was Rs.11.25, 66% of which was the
cost of food and the remainder was wages and other expenses. By 1973, the cost
of food had increased by 55% and wages and other expenses had increased by
45%. Find the cost of producing
a litre of milk in 1973.​

Answer 1

Given  

In 1970 the cost of producing a litre of milk was Rs.11.25,  66% of which was the cost of food and the remainder was wages and other expenses.

By 1973, the cost of food had increased by 55% wages and other expenses had increased by 45%

To Find :  the cost of producing a litre of milk in 1973.

Solution:

In 1970 the cost of producing a litre of milk = Rs 11.25

cost of food  = (66/100)11.25 = 7.425 Rs per litre

wages and other expenses.  = 11.25 - 7.425  = 3.825 Rs per litre

By 1973, cost of food had increased by 55%  

New cost of food = 7.425 ( 1 + 55/100)  = 11.50875   Rs per litre

wages and other expenses had increased by 45%

New cost of Wages and other expenses =  3.825 ( 1 + 45/100)  = 5.54625   Rs per litre

New cost =  11.50875 + 5.54625  =  17.055 Rs per litre

cost of producing a litre of milk in 1973 = 17.055 Rs per litre

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