
Elementary Math Fractions, Percentages, Word Problems, Equations, Inequations, Factorization, Expansion 
 LinkBack  Thread Tools  Display Modes 
September 19th, 2017, 01:30 PM  #1 
Newbie Joined: Sep 2017 From: london Posts: 3 Thanks: 0  Growth rate question
In 2016, item cost is £6 and number of units sold is 10 generating a total cost of £60 in 2017, item cost increases to £7 and number of units sold increases to 15 generating a total cost of £105 Question: Of the 75% increase in cost, how much is due to price increases and how much is because of volume increase? 
September 19th, 2017, 02:11 PM  #2 
Global Moderator Joined: Dec 2006 Posts: 18,691 Thanks: 1523 
It's probably expected that you say the 75% increase in cost comprises 25% due to the price increase and 50% due to the volume increase.

September 20th, 2017, 12:12 AM  #3 
Newbie Joined: Sep 2017 From: london Posts: 3 Thanks: 0 
How did you arrive at that?

September 20th, 2017, 04:41 AM  #4 
Math Team Joined: Jan 2015 From: Alabama Posts: 2,966 Thanks: 807 
If the only change had been the increase in cost per unit, then the increase in cost from 6 to £7 would have raised the cost by £10. If the only change had been that the number of units went from 10 to 15, that would have raised the cost by £30. That adds to only £40 so there must have been some other reasons for the rise in cost. The cost per unit accounts for 10/60= 1/6 or 16.7% of the increase. The increase in number of units accounts for 30/60= 1/2 or 50% of the increase. The "other reasons" account for the remaining 33.3% of the increase.


Tags 
growth, question, rate 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Rate Of Growth Of Two Numbers  EvanJ  Algebra  3  May 10th, 2016 11:41 AM 
Growth rate  sostupid  Math  0  January 14th, 2016 07:55 AM 
Growth rate  ryanpodolski125  Linear Algebra  0  November 27th, 2013 08:55 PM 
Growth rates for rows and growth rate for columns  cjejung  Linear Algebra  1  January 17th, 2012 08:38 AM 
Growth Rate  rbursell  Economics  1  June 4th, 2008 08:29 PM 