Study the graph and answer the question that follows: The graph indicates the cost of the production of a firm. A = Raw material cost B = Packing material cost C = Fixed manufacturing expenses D = Labour cost The total value in rupees of all sectors is 120.0 lakh. If the total labour cost increases to Rs. 2.4 lakh, what percentage increase does it represent?
Solution
✅ Correct Option: 2
Find current labour cost from pie chart: Total value = Rs. 120 lakh Labour cost (D) = $(100-49-11-39.5)\%=0.5\%$ of total Current labour cost = $\frac{0.5}{100} × 120$ = Rs. $0.6$ lakh New labour cost is given: New labour cost = Rs. $2.4$ lakh Calculate percentage increase: Percentage increase = $\frac{\text{New value - Original value}}{\text{Original value}} × 100$ = $\frac{2.4 - 0.6}{0.6} × 100$ = $\frac{1.8}{0.6} × 100$ = $3 × 100$ = $300\%$