The cost of making an article is divided between materials, labour and overheads in the ratio 5:3:1. The cost of the materials is Rs.125, what is the cost of labour?
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Solution
Let the total cost of making an article be x Rs.
The cost is divided between materials, labour and overheads in the ratio 5:3:1
Let x be the cost of overheads, then cost of labour is 3x and cost of materials is 5x.