The following pie chart shows the percentage distribution of the expenditure incurred in manufacturing a scientific calculator. Study the pie chart and answer the question.

If 500 products are manufactured and the direct labour cost on  them amounts to ₹1,00,000, then what should be the selling price of the product so that the manufacture, can earn a profit of 44%?

Correct option is A

Given:

The percentage distribution of the expenditure incurred in manufacturing a scientific calculator

Products manufactured = 500

Direct labour cost = ₹1,00,000

Solution:

Let the total cost be x

Direct labour cost from pie-chart = 24%

Then 24% of x = 0.24x

0.24x = 100000

​$$x= \frac{100000}{24} = ₹4,16,666$$​​

Cost Price per product = $$\frac{4,16,666}{500} = ₹833.33$$​​

Profit needed =  44%

Then, selling price = 833.33 +  44% of 833.33 = 833.33 + 366.66 $$\approx$$​ ₹1200