Question : Refer to the following data table and answer the following Question.
| Items | Yearly Expense in Rs. Lakhs |
| Raw Materials | 12 |
| Labour | 6 |
| Rent | 3 |
| Interest | 4 |
| Taxes | 3 |
Raw Materials and Interest are what percent of total expenses?
Option 1: 49.89%
Option 2: 42.64%
Option 3: 64.39%
Option 4: 57.14%
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Correct Answer: 57.14%
Solution :
The total yearly expenses = Rs. 28 lakhs
The combined expense of Raw Materials and Interest = Rs. 12 lakhs + Rs. 4 lakhs = Rs. 16 lakhs
The percentage of total expenses that Raw Materials and Interest make up
$=\frac{\text{Combined expense of raw materials and interest}}{\text{Total yearly expenses}} × 100$
$=\frac{16}{28} \times 100$
$ =57.14\%$
Hence, the correct answer is 57.14%.
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