The following pie chart shows the percentage distribution of the expenditure incurred in manufacturing a scientific calculator. If 500 products are manufactured and the direct labour cost on them amounts to ₹1,00,000, what should be the selling price of each product so that the manufacturer can earn a profit of 44%?

Explanation

Solution: Given: Total number of products manufactured = 500 Direct labour cost = ₹1,00,000 Direct labour cost percentage = 24% (from the pie chart) Desired profit = 44% Step 1: Find the Total Manufacturing Cost From the pie chart, the Direct Labour Cost is 24% of the total manufacturing cost. Let the total manufacturing cost be ₹X. Since the direct labour cost is 24% of the total cost, we can write: 0.24 × X = 1, 00, 000 Solving for X: X = 1,00,000 0.24 ​ X = 4, 16, 666.67 Therefore, the total manufacturing cost is approximately ₹4,16,667. Step 2: Calculate the Cost Price per Product Cost Price per product = Total Manufacturing Cost Number of Products ​ Cost Price per product = 4,16,667 500 ​ Cost Price per product = ₹833.33 Step 3: Calculate the Selling Price per Product with 44% Profit To make a profit of 44%, we calculate the selling price per product as follows: Selling Price per product = Cost Price per product × 1.44 Selling Price per product = 833.33 × 1.44 Selling Price per product = ₹1200 Answer: The selling price of each product should be ₹1200 to earn a 44% profit.