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GATE 2014 EC (EC4) – Question 9

General Aptitude · Quantitative Aptitude: Arithmetic and Number Computation · 2 marks · Numerical answer

An air-purifier firm sold 200 units in 2012. The pie chart shows shares of raw material, labour, energy, plant & machinery, and transportation in total manufacturing cost in 2012. Labour expenditure was ₹4,50,000. In 2013 raw-material expenses increased 30% and all other expenses increased 20%. Find the percentage increase in total cost in 2013.

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Correct answer: 22 to 22

Explanation

Use the2012cost shares as weights. Raw materials are20%of total cost and rise30%; the other80%rise20%. The total increase is0.20×30%+0.80×20%=6%+16%=**22%**. Absolute labour expenditure and production count are unnecessary for this weighted percentage.