byRituparna Nath Content Writer at Study Abroad Exams
Question: The price of raw materials has gone up by 15%, labour cost has also increased from 25% of the cost of raw material to 30% of the cost of raw material. By how much percentage should there be a reduction in the usage of raw materials so as to keep the cost same?
- 30%
- 24%
- 28%
- 25%
- 17%
“The price of raw materials has gone up by 15%” - this is a topic of the GMAT Quantitative reasoning section of GMAT. This question has been taken from the book "GMAT Official Guide Quantitative Review". To solve GMAT Problem Solving questions a student must have knowledge about a good number of qualitative skills. The GMAT Quant section consists of 31 questions in total. The GMAT quant topics in the problem-solving part require calculative mathematical problems that should be solved with proper mathematical knowledge.
Solution and Explanation:
Approach Solution 1:
Considering the given situation in the case of the price of raw materials increasing by 15%, and labour cost increasing from 25% to 30%, the initial approach can be used-
The initial price of raw materials = 100
The new price of raw materials = 115
Initial labour cost = 125
New labour cost = 130
Accordingly, the percentage at the rate of which it can be seen that reduction in the usage of raw materials so as to keep the cost same
For me, this meant that
115* 130 * x( % decrease) = 125 * 100
So just calculated the individual percentage decrease and added it
((130- 125) / 125) * 100 = 5/125 * 100 = 4
((115- 100) / 115) * 100 = 13
Total % = 17
Hence, 17% is the correct answer for option E
Correct Answer: E
Approach Solution 2:
Based on the given condition in the above question,
Let the initial cost of raw materials be 100. So, the initial labour cost was 25 and the net cost was 125
Now,
15% rise in raw materials cost and labour cost has gone up to 30% from 25 %
Raw material cost = 115 And
Labour cost = (115 × 30%) = 34.5
Accordingly. New net cost,
= 115 + 34.5 = 149.5
Difference of labour cost = 149.5 - 125 = 24.5
% reduction = 24.5×100149.5
= 17%
Hence there should be a 17% reduction in the usage of raw materials ensuring that the cost remains the same
Correct Answer: E
Suggested GMAT Problem Solving Questions
- GMAT Problem Solving- largest 3 digit number to have an odd number of factors
- GMAT Problem Solving- Bag A Contains Red, White and Blue Marbles such that
- GMAT Problem Solving- Greg Assembles Units of a Certain Product at a Factory.
- GMAT Problem Solving- Is Square Root = Always Positive?
- GMAT Problem Solving- Following equations has a solution in common with x^2 - 2
- GMAT Problem Solving- What is the units digit of the product (32^28) (33^47) (37^19)?
- GMAT Problem Solving- Is Zero Even Integer or Odd Integer?
- GMAT Problem Solving- How many even divisors of 1600 are not multiples of 16?
- GMAT Problem Solving- How many 5 digit (digit = 0 - 9) zip codes can exist in which at least one digit is repeated ?
- GMAT Problem Solving- How Much is the Greatest of Five Consecutive Even Integers Greater than the Smallest?
- GMAT Problem Solving- The least number of digits (including repetitions) needed to express 10^100 in decimal notation
- GMAT Problem Solving- A Scientific Research Study Examined a Large Number of Young Foxes
- GMAT Problem Solving- The Smallest of Six Consecutive Odd Integers Whose Average (arithmetic mean) is x + 2
- GMAT Problem Solving- The Greatest 6-Digit Number When Divided by 6, 7 ,8 , 9, and 10 Leaves a Remainder of 4, 5, 6, 7, and 8
- GMAT Problem Solving- If 20 Men or 24 Women or 40 Boys can do a Job in 12 Days
- GMAT Problem Solving- If 10 millimeters equal 1 centimeter, how many square centimeters does 1 square millimeter equal?
- GMAT Problem Solving- How many Terminating Zeroes does 200 Have?
- GMAT Problem Solving- Properties of Circle
- GMAT Problem Solving- If 10, 12 and ‘x’ are Sides of an Acute Angled Triangle, How Many Integer Values of ‘x’ are Possible?
- GMAT Problem Solving- For How Many Values of k is 12^12 the Least Common Multiple
Comments