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Extract: Steel: The shears have 0.4 kg of high quality steel in the final product. The manufacturing process loses 5% of all steel put in. Steel costs $4,000 per tonne ( 1 tonne= 1,000 kg)
My answer: 0.4kg x 0.95 x $4.00= $1.52
Book: 0.4kg/0.95 x $4.00= $1.68Sir I’m just wondering why the solution divided by 0.95 rather than multiply as I thought to get the actual output amount. The other parts of the question I was able to calculate without difficulty.
Thanks much!
For every 100kg put in, this will waste 5% (5kg) and therefore only have 95% (95kg) available for the final product.
Putting it the other way round, for every 95kg used in the final product, they will need to buy 100kg.
Therefore the total they buy will have to be 100/95 x 0.4kg , which at $4 per kg is
100/95 x 0.4kg x $4 = $1.68
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