The following pie chart shows the percentage distribution of the expenditure incurred in manufacturing a product X. Based on the pie chart answer the question given below.

If, for a certain quantity of product X, the manufacturer has to pay ₹18,000 towards transportation cost, then how much will be the direct material cost for the same quantity of product X?

Correct option is A

Given:

Transportation cost percentage = 9%

Direct material cost percentage = 22%

Transportation cost = ₹18,000

Concept Used:

The total expenditure can be found using the proportion formula:

​$$\text{Total Expenditure} = \frac{\text{Transportation Cost} \times 100}{\text{Transportation Percentage}}$$​​

​$$\text{Direct Material Cost} = \frac{\text{Direct Material Percentage} \times \text{Total Expenditure}}{100}$$​​

Solution:

​$$\text{Total Expenditure} = \frac{18000 \times 100}{9} = \frac{1800000}{9} = 200000$$​​

​$$\text{Direct Material Cost} = \frac{22 \times 200000}{100} = \frac{4400000}{100} = 44,000$$

Option (A) is right.