The prime cost of an article is three times the value of the raw material used. The cost of raw materials increases in the ratio of 5 : 12 and manufacturing expenses in the ratio 4 : 5. The article, which originally cost rs. 6, will new cost?
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The prime cost of an article is three times the value of the raw material used the cost of raw-material increase in the ratio of 5:12 and manufacturing expenses in the ratio 4:5..The article, which originally cost Rs. 6 will new cost?
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Explanation:total cost = rm + overheads
6=2+(4) tc and rm 3:1 then rm =2
Then new rm = 2/x=5/12 =24/5
New overheads ( manufac.)= 4/x=4/5=5
New cost = 24/5+5= 9.8 rs
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