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The manufacturing cost of 10 articles is Rs. 150. Tax on each article is 6% the manufacturing cost. The transportation cost comes to Re. 1 per article. By what percent is the total cost greater than manufacturing cost?

Last updated date: 19th Jun 2024
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Firstly, we will find the manufacturing cost of 1 article by dividing total cost with no. of articles. Then we will find the tax per article. Then, we will evaluate the total cost of one article by adding the manufacturing cost, tax and transportation cost. Finally, we will calculate the change in percentage and hence get our required answer.

Complete step by step solution:
Firstly, the cost of one article is (Total Manufacturing Cost)/ (No. of articles).
Manufacturing Cost of 1 article =$\dfrac{{Rs.150}}{{10}} = Rs.15$
Tax on 1 article is 6% the manufacturing cost
Tax =$6\% Rs.15 = \dfrac{6}{{100}}Rs.15 = Rs.0.9$
As what is given is the transportation cost per article which is Re.1.
Now, Total Cost per article = Manufacturing Cost of 1 article + Tax + Transportation Cost per article
Total Cost = $Rs.15 + Rs.0.9 + \operatorname{Re} .1 = Rs.16.9$
Now, the increase in percentage is given by
  \dfrac{{16.9 - 15}}{{15}} \times 100\% \\
   \Rightarrow \dfrac{{1.9}}{{15}} \times 100\% \\
   \Rightarrow 12.66\% \\

So, the total cost per article is 12.66% greater than the manufacturing cost.

Another approach to attempting such questions is to calculate the total cost for all the articles and then find the change in percentage of total cost of all articles with respect to the total manufacturing cost. The answer remains the same in both the cases.