The cost of supervising a company is made of the following: 40% office rental, 35% labor, 20% materials and 5% miscellaneous cost. If the office rental increased by 24%, labor increased by 15%, cost of materials increased by 20% and the miscellaneous costs are unchanged, find the percentage change in the cost of supervising the company. Show solutions.
The cost of supervising a company is made of the following: 40% office rental, 35% labor, 20% materials and 5% miscellaneous cost. If the office rental increased by 24%, labor increased by 15%, cost of materials increased by 20% and the miscellaneous costs are unchanged, find the percentage change in the cost of supervising the company. Show solutions.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 3.7IP
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The cost of supervising a company is made of the following: 40% office rental, 35% labor, 20% materials and 5% miscellaneous cost. If the office rental increased by 24%, labor increased by 15%, cost of materials increased by 20% and the miscellaneous costs are unchanged, find the percentage change in the cost of supervising the company. Show solutions.
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