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Sir,
when to use 100/80 or 80/100 ?
Eg if further processing leads to normal loss of 20% at the beginning of the process for each of the products eg 1200 units x 80/ 100 [ 100% 1200units for 80% it is 960]eg: leather cost $10 per metre and 2 metres are needed for complete chair although 20% of all leather is wasted in the process 10 x 2 x 100/80 why 100/80?
Eg steel ; the shears have 0.4 kg of high quality steel in the final product . the manufacturing process loses 5% of all steel in steel costs $ 4000 PER TONNE [ 1 tonne = 1000kg] ?
thanks in advance
It depends whether you are given the input or the output.
If waste is 20%, then for every 100 purchases, they will lose 20 and therefore the amount available would be 80.
Putting it the other way round, if they need 80, then they will need to purchase 100.
So if they need 2 metres for each chair, then they will have needed to buy 100/80 x 2 metres.
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