A firm producing air purifiers sold 200 units in 2012. The following pie chart presents the share of raw material, labour, energy, plant & machinery, and transportation costs in the total manufacturing cost of the firm in 2012. The expenditure on labour in 2012 is Rs 4,50,000. In 2013, the raw material expenses increased by 30% and all other expenses increased by 20%. If the company registered a profit of Rs 10 lakhs in 2012, at what price (in Rs) was each air purifier sold? [Pie chart: Raw material 20%, Labour 15%, Energy 15%, Plant & Machinery 35%, Transportation 15%]

GATE 2014 · General Aptitude · Pie Chart · medium

Answer: The selling price per air purifier in 2012 was Rs 20,000.

1. Find total manufacturing cost from labour data: Labour share = 15% (from pie chart). Labour cost = Rs 4,50,000. Total manufacturing cost = 4,50,000 / 0.15 = Rs 30,00,000.
2. Calculate total revenue using profit: Total cost = Rs 30,00,000. Profit = Rs 10,00,000 (Rs 10 lakhs). Revenue = 30,00,000 + 10,00,000 = Rs 40,00,000.
3. Calculate selling price per unit: Revenue = Rs 40,00,000. Units sold = 200. Price per unit = 40,00,000 / 200 = Rs 20,000.