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Question
The price of soap is collectively decided by five factors : Research, raw materials, labour, advertisement and transportation. Assume that the financial relationship is : Price of soap = (k X Research costs X Raw materials costs X Labour costs X Advertising cost X Transportation cost)
If there are respective changes of 10%, 20%, -20%, 25%, and 50% in the 5 factors, then find the change in the price of the soap.
The price of soap is collectively decided by five factors : Research, raw materials, labour, advertisement and transportation. Assume that the financial relationship is : Price of soap = (k X Research costs X Raw materials costs X Labour costs X Advertising cost X Transportation cost)
If there are respective changes of 10%, 20%, -20%, 25%, and 50% in the 5 factors, then find the change in the price of the soap.
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Solution
The correct option is D 98%
98%.
Let the Price of soap be Rs. 100
10% increase - 110 ; 20% increase on 110 - 132
132 decreased by 20% - 105.6
105.6 increased by 25% gives - 132
132 increased by 50% gives - 198
Therefore, there is a 98% increase overall.
98%
98%.
Let the Price of soap be Rs. 100
10% increase - 110 ; 20% increase on 110 - 132
132 decreased by 20% - 105.6
105.6 increased by 25% gives - 132
132 increased by 50% gives - 198
Therefore, there is a 98% increase overall.
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